ta6 safeguard measures (f)

8/10/2019 TA6 Safeguard Measures (F)

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SAFEGUARD MEASURES

R.A. No. 8800 S. 2000


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Types: Objective

General Special

Remove injury and

facilitate structuraladjustments that willenable an industry to gaincompetitiveness

Assist farmers whose

products were previouslyprotected by QRs thathave been tariffied


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Types: Nature

General Special

Addresses fairly traded

imports: Increased level ofimports absolute orrelative to production

Addresses fairly traded

imports: Volume of importsexceed a base triggerlevel* or price falls below atrigger level price


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Types: Forms of Measure

General Special

Provisional: tariff increase

Definitive: tariff increase;quantitative restrictions(e.g. import quota, importlicensing)

Provisional: N/A

Definitive: Additional dutynot exceeding 1/3 of thelevel of the ordinary duty ineffect during the year inwhich the action wastaken.


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Invocation of SSGs

SPECIAL SAFEGUARD MEASURES may beinvoked, if:

The volume of imports exceeds a trigger level; orThe price of imports falls below a trigger price

In either case, injury to domestic industryneed not be established.


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Quantitative Restrictions

QRs are those restrictions which limit thequantity of merchandise permitted to enteror leave a country.Examples: Quotas, importations which needlicensing requirements


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B. The Legislation

R.A. No.: 8800Title: Safeguard Measures Act of 2000

Signed by: Former Pres. Joseph EstradaSigned on: July 19, 2000Published: July 24, 2000

Effective: August 9, 2000IRR: Joint Administrative Order No. 03, s.2000


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What is a Trigger Price?

A price at which an import causes theimporting country automatically to impose atariff or quota.These are used when the importing countrygenerally wishes to promote free trade butdoes not want importers to undercutdomestic industry.


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Administrators of RA 8800:

General SafeguardDTI-BIS / DAReceives application / petition

Conducts preliminary investigation


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General SafeguardTariff CommissionConducts formal investigationSubmits recommendation to DTI / DA SecretaryMonitors domestic industrys progress Conducts investigation for extension and re-application of safeguard measure

Evaluates effectiveness of safeguard actions takenby domestic industry


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Bureau of CustomsImplements the imposition of safeguard measures


General Safeguard


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Special SafeguardDA:Receives application / petitionConducts verification* within 5 working days fromreceipt of petitionIssues Department Order (DO) for the impositionof a special safeguard duty


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C. Procedures

Qualified Petitioners: General SafeguardDomestic Producers as a whole, of like or directlycompetitive products*The President, or the House or Senate Committeeon Agriculture, or on Trade and CommerceDTI or DA Secretary, motu proprio**

Qualified Petitioners: Special SafeguardAny person, whether natural or juridicalDA Secretary, motu proprio*


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Where to file petition?

General Special

DTI for non-agriculturalproductDA for agricultural product

Department of Agriculture


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Investigation Stages:

General SafeguardPRIMA FACIE: DTI-BIS/DA has 5 calendardays* to decide whether to initiate apreliminary investigation**PRELIMINARY: Investigation includes (1)notification to all interested parties and thegovernment of the exporting country, and (2)distribution of questionnaires to parties.


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Has 2 calendar days to initiate preliminaryinvestigation and notify all interested partiesand the government of the exporting country,and send proforma respondentsquestionnaires to parties.


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Has 30 calendar days from receipt ofresponse to questionnaire to makepreliminary investigation whether to imposemeasure or not.

If AFFIRMATIVE: DTI/DA Secretary issues DO forimposition of measure

If NEGATIVE: DTI/DA Secretary terminatesinvestigation


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FINAL: Commission has 120 calendar days[60 if deemed urgent] from receipt ofendorsement from Secretary to (1) concludeformal investigation and (2) submit its reportof findings and recommendation to Secretary


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Within 3 calendar days after Secretary makesdecision, he shall advise the Secretary ofFinance to instruct the Bureau of Customs toimpose provisional measure.


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DECISION: Secretary has 15 calendar daysfrom receipt of Commissions report to makedecision.

If AFFIRMATIVE: Issues DO to implementimposition of general safeguard measure within 2days from making decision

If NEGATIVE: Issues (1) DO for termination ofcase, (2) written instruction to BOC Chiefauthorizing the return of cash bond collectedwithin 10 days from the date of final decision


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Investigation Stages:

Special SafeguardVERIFICATION: DA Secretary shall verify ifthe cumulative import volume of SSGagricultural product exceeds trigger volume,actual CIF import price is less than triggerpriceFINDINGS: Secretary shall come up with areport of findings within 5 working days fromreceipt of request


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IMPOSITION: Secretary shall issue DOrequesting Commissioner of Customsthrough the Secretary of Finance to imposean additional special safeguard duty.


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D. Elements

General Special

Like Product

Increased importsInjuryCausality

Volume of imports exceedbase trigger levelPrice of imports fall belowtrigger price level


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Serious Injury Factors

Rate and amount of increase in imports inabsolute or relative terms

Share of domestic market taken by increasedimports


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Changes in the level of:SalesPricesProductionProductivityCapacity utilizationInventoriesProfitsWages; andEmployment of domestic industry


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Significant idling of productive facilities indomestic industry including the closure ofplants or underutilization of productioncapacityInability of a significant number of firms tocarry out domes production at a profit; andSignificant unemployment andunderemployment within the domesticindustry


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E. Measures

General Safeguard MeasuresPROVISIONALtariff increase either ad valoremor specific or bothDEFINITIVE may take the following forms

Increase in, or imposition of, any dutyDecrease in or the imposition of a tariff-rate quota

Modification or imposition of any QRs One or more adjustment measuresAny combination of actions described in P1-4


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E. Measures

Special Safeguard MeasuresPROVISIONALnot applicableDEFINITIVE not exceeding 1/3 of applicable out-quota CUD

0% if price difference is up to 10% of trigger price30% if price difference is 10%-40%

50% if price difference is 40%-60%70% if price difference is 60%-75%90% if price difference exceeds 75% of trigger price*


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Duration of Measure

General Special

Provisional: not exceeding200 calendar days fromdate of impositionDefinitive: maximum of 4years, extendable foranother 8 years (10 yearsfor developing countries)

Shall only be effective untilthe end of the year inwhich it has been imposed.


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Application Limitations of

General Safeguard MeasuresYes. (1) extent of redressing serious injury todomestic industry, and (2) facilitate thedomestic industrys adjustments* When QRs are used, it shall not reduce thequantity of imports below average importsfor 3 preceding years

It shall not be applied to a product fromdeveloping countries**


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Application Limitations of

Special Safeguard MeasuresSpecial safeguard measures shall not beapplied concurrently with the generalsafeguard measuresRecourse to safeguard measures shall besubject to the provisions on generalsafeguard measures as provided in R.A. No.

8800


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Additional information

A WTO member (Ex. the Philippines) cannotchoose or recommend the application of generalsafeguards on a selective basisWhen applying for safeguard measures, thePhilippines must pay for them throughcompensation which is the equivalent level of

concessions and other obligations with respectto the affected exporting WTO members.


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The Adjustment Plan

An adjustment plan is the action planindicating a set of qualified goals that aconcerned industry commits to undertake inorder to facilitate its positive adjustment toimport competitionIt must be submitted to the Commission

within 45 calendar days upon receipt ofnotice of submission.


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References

2010 and 2013 Primer on Development in Tariffsand Trade PolicyINTRODUCTION TO SAFEGUARD MEASURESby World Trade Organization: http://bit.ly/SP6eTq R.A. No. 8800 (Full text) & Safeguard MeasuresOverview by Tariff Commission: http://bit.ly/1kIsncW http://bit.ly/1paTK5t

Definition: Trigger Price http://bit.ly/1m2vVHd
http://bit.ly/SP6eTqhttp://bit.ly/1kIsncWhttp://bit.ly/1paTK5thttp://bit.ly/1m2vVHdhttp://bit.ly/1m2vVHdhttp://bit.ly/1paTK5thttp://bit.ly/1kIsncWhttp://bit.ly/SP6eTq


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Presenters

Group 2Balanghig, EdwardBallenas, BernardTalisic, RioChong, EricDoromal, DeniaRetorca, ElixirBaldevieso,Daluro, RaulRemonde, GenisMiole, HazelCesar, Kim

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