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JOINT ADMINISTRATIVE ORDER NO. 03
SERIES OF 2000
IMPLEMENTING RULES AND REGULATIONS
PURSUANT TO REPUBLIC ACT 8800:
"AN ACT PROTECTING LOCAL INDUSTRIES BY PROVIDING SAFEGUARD
MEASURES TO BE UNDERTAKEN IN RESPONSE TO INCREASED IMPORTS
AND PROVIDING PENALTIES FOR VIOLATION THEREOF",
OTHERWISE KNOWN AS
"THE SAFEGUARD MEASURES ACT"
______
WHEREAS, Section 39
of Republic Act 8800 (RA 8800) sets its effectivity "..fifteen days following its
complete publication in two (2) newspapers of general circulation or in the
Official Gazette, whichever comes earlier." RA 8800 was published in two (2)
newspapers of general circulation on July 24, 2000 and thus is effective on August 9,
2000.
NOW, THEREFORE, these
Implementing Rules and Regulations (IRRS) are issued as Joint Administrative Order No. 03
(2000) to guide all concerned departments, offices, agencies, and stakeholders, in the
implementation of RA 8800.
CHAPTER I
GENERAL PROVISIONS
Section 1. Short Title. -
This
Joint Administrative order shall be known as the Implementing Rules and Regulations (IRRs)
Pursuant to Republic Act (RA) 8800.
Section 2. Declaration of Policy.
-
These IRRs are issued pursuant to the policy declared under RA 8800, to wit:
"The State shall promote the competitiveness of domestic industries and
producers based on sound industrial and agricultural development
polices, and the efficient use of development
polices, and the efficient use of human, natural and technical resources. In
pursuit of this goal and in human, natural and technical resources. In
pursuit of this goal and in the public interest,
the State shall
provide safeguard measures to protect domestic industries and producers from
industries and producers from
increased imports which cause or threaten to
increased imports which cause or threaten to cause serious injury to those
domestic industries and producers."
Rule 2.1.These IRRs shall remain effective
unless explicitly and specifically amended by the Secretaries of the Department of
Agriculture and the Department of Trade and Industry in consultation with the Department
of Finance, the Tariff Commission, and the Bureau of Customs.
Section 3. Scope of Application.
- This Act shall apply to products being imported into the country irrespective of
source.
Rule 3. Scope of Application - The
provisions of these IRRs shall apply to products which are being imported from all sources
into the Philippines.
Rule 3.1. A general safeguard measure under
Chapter 11 of these IRRs shall apply where there is an increase in the quantity of a
product being imported, whether absolute or relative to the domestic production, which is
determined to be a substantial cause of serious injury or threat thereof to the domestic
industry.
Rule 3.2. A special safeguard measure on an
agricultural product under Chapter Ill of these IRRs shall apply where:
Rule 3.2.a Its cumulative import volume, in a given year,
exceeds its trigger volume; or but not concurrently;
Rule 3.3.b. Its actual c.i.f. import price has gone below
its trigger price.
Section 4. Definitions.- For the
purposes of this Act and these IRRS, the following terms are defined as follows:
a) "Agricultural product" shall refer to
a specific commodity under Chapters 1 to 24 of the Harmonized System (HS) of
Commodity Classification as used in the Tariff and Customs Code of the Philippines;
b) "Commission" shall refer to the Tariff Commission;
c) "Consumers" shall refer to natural persons
or organized consumer groups who are purchasers, lessees, recipients or prospective
purchasers, lessees, recipients of consumer products, services or credit;
d) "Critical circumstances" shall mean
circumstances where there is prima facie evidence that increased imports, whether
absolute or relative to domestic production, are a substantial cause of serious
injury or threat thereof to the domestic industry and that delay in taking action under
this Act/ these IRRs would cause damage to the
industry that would be difficult to repair;
e) "Directly competitive products" shall
mean domestically-produced substitutable products;
f) "Domestic industry" shall refer to
the domestic producers, as a whole, of like or directly competitive products
manufactured or produced in the Philippines or those whose collective output of
like or directly competitive products constitutes a major proportion of the total
domestic production of those products;
g) "Interested parties "shall include domestic
producers, consumers, importers, and exporters of the products under consideration;
h) "Like product" shall mean a domestic product
which is identical, i.e. alike in all respects to the imported product under
consideration, or in the absence o such a product, another domestic product which,
although not alike in all respects, has characteristics closely resembling those of
the imported product under consideration;
i) 'Market access opportunity" shall mean
the percentage of the total annual volume of imports of an agricultural product to
the corresponding total volume of domestic consumption of the said product in the
country in the three (3) immediately preceding years for which data are available;
j) "Minimum Access Volume (MAV)" or
tariff-rate quota shall refer to the amount of imports of an agricultural
product allowed to be imported into the country at a customs duty lower than the
out-quota customs duty;
k) "Positive adjustment to import competition shall refer
to the ability of the domestic industry to compete successfully with imports after the
termination of any safeguard measure, or to the orderly transfer of resources to
other productive pursuits; and to the orderly transition of dislocated workers in
the industry to other productive pursuits;
l) "Price difference" is the amount
obtained after subtracting the c.i.f. import price from the trigger price;
m) "Product" shall refer to article,
commodity or good,
n) "Secretary" shall refer to either the
Secretary of the Department of Trade and Industry in the case of non-agricultural
products or the Secretary of the Department of Agriculture in the case of
agricultural products;
o) "Serious injury" shall mean a significant
impairment in the Position of a domestic industry after evaluation by competent
authorities of all relevant factors of an objective and quantifiable nature having
a bearing on the situation of the industry concerned, in particular, the rate and
amount of the increase in imports of the product concerned in absolute and relative
terms, the share of the domestic market taken by increased imports, changes in
levels of sales, Production, productivity, capacity utilization, profit and losses,
and employment;
p) "Substantial cause" means a cause which is important but
not less than any other cause;
q) "Threat of serious injury" shall be understood to mean
serious injury that is imminent;
r) "Trigger price " is the price benchmark for applying the
special safeguard measure; and r) "Trigger price " is the price benchmark for applying the
special safeguard measure; and
s) "Trigger volume " is the volume benchmark for applying the
special safeguard measure.
Rule 4.1. Other terms used in these IRRs include and are
defined as: Rule 4.1. Other terms used in these IRRs include and are
defined as:
a) "Adjustment Plan" shall refer to an action plan which a domestic
industry is required to submit, that describes a set of quantified goals, specific plans,
and timetables that a concerned industry commits to undertake in order to facilitate
positive adjustment of the industry to import competition.
b) "Domestic industry" shall refer to the domestic producers,
as a whole, of like or directly competitive products manufactured or produced
in the Philippines or those whose collective output of like or directly competitive
products constitutes a major proportion of the total domestic production of those
products; Provided, however, that
1) in the case of a domestic producer which also imports the product under
consideration, only its domestic production of the like or directly competitive product
shall be treated as part of the domestic production, or
2) in the case of a domestic producer which produces more than one product, only
that portion of its production of the like or directly competitive product may be treated
as part of such domestic industry.
c) "Perishable and seasonal agricultural product" shall refer to
any agricultural product which has a short shelf life, growing season or marketing period,
among other factors;
CHAPTER II
GENERAL SAFEGUARD MEASURES
Section 5. Conditions for the Application of General Safeguard Measures.- The
Secretary shall apply a general safeguard measure upon a positive final determination of
the Commission that a product is being imported into the country in increased quantities,
whether absolute or relative to the domestic production, as to be a substantial cause of
serious injury or threat thereof to the domestic industry; however, in the case of
non-agricultural products, the Secretary shall first establish that the application of
such safeguard measures will be in the public interest.
Rule 5. Conditions for the Application of General Safeguard
Measures
Rule 5.1. The Secretary shall apply a
general safeguard measure upon a positive final determination of the Commission that a
product, irrespective of source, is being imported into the country in increased
quantities, whether absolute or relative to the domestic production, as to be a
substantial cause of serious injury or threat thereof to the domestic industry. However,
in the case of non-agricultural products, the Secretary shall first establish that the
application of such safeguard measure will be in the public interest.
Rule 5.2 The Secretary, when establishing
that the application of a safeguard measure will be in the public interest, shall take
into consideration the following factors, among others: i) whether the imposition of the
provisional measure will result in a political or economic crisis; and ii) the extent to
which such imposition will cause a shortage of the product under consideration in the
domestic market.
Section 6. Initiation of Action Involving General
Safeguard Measure. - Any person, whether natural or juridical,
belonging to or representing a domestic industry may file with the Secretary a
verified petition requesting that action be taken to remedy the serious injury or
prevent the threat thereof to the domestic industry caused by increased imports of
the product under consideration.
The petition shall include documentary evidence supporting
the facts that are essential to establish:
a. an increase in imports of like or directly competitive products;
b. the existence of serious injury or threat thereof to the domestic industry; and
c. the causal link between the increased imports of the product under consideration
and the serious injury or threat thereof
The Secretary shall review the accuracy and adequacy of
the evidence adduced in the petition to determine the existence of a prima.facie
case that will justify the initiation of a preliminary investigation within five
(5) days from receipt of the petition.
The Secretary may also initiate action upon the request of
the President; or a resolution of the House or Senate Committee on Agriculture, or
House or Senate Committee on Trade and Commerce.
In the absence of such a petition, the Secretary may, motu
proprio, initiate a preliminary safeguard investigation, if there is evidence that
increased imports of the product under consideration are a substantial cause of, or
are threatening to substantially cause, serious injury to the domestic industry.
The Secretary may extend legal, technical and other
assistance to the concerned domestic producers and their organization at all stages
of the safeguard action.
Rule 6. Initiation of Action
Rule 6.1. Information and Other Forms of Assistance to the Domestic
Industry:
The Secretary and the Commission shall, upon request, make available to the
public general information concerning the safeguard measure and other forms of trade
remedies. Such information may include the procedures to be followed and the appropriate
dates or milestones in the investigations related to the imposition of such measures.
The Secretary and the Commission shall also provide, to the extent possible at
all stages of the action, assistance and advice to interested parties which seek to
obtain the remedies and benefits of the safeguard measures, such assistance and advice to
include the following:
Rule 6.1.a Information on import volumes and values, at the specific
product level;
Rule 6.1.b Informal legal and technical
advice on the appropriateness of invoking the safeguard measure as a remedy for the trade
problem, and on the availability of information in support of the proposal.
Rule 6.1.c Information to all concerned parties that receipt of these
forms of assistance shall not be construed as a guarantee that the recipient will prevail
in the investigation for the application of safeguard measures.
Rule 6.2. Petitioners
Rule 6.2.a. Any person whether natural or juridical,
belonging to or representing a domestic industry, may file a written application using a
proforma protestant's questionnaire which shall include evidence of i) an increase
in the volume of imports of the like or directly competitive products, ii) the existence
of serious injury or threat thereof to the domestic industry; and iii) causal link between
the increased imports of the product under consideration and the serious injury or threat
thereof. The applicant shall submit four (4) copies of the application, including annexes,
two (2) copies of which shall contain the non-confidential summaries of the information
submitted.
Rule 6.2.b. A properly documented application
shall contain relevant evidence and information reasonably available to the applicant on
the following:
i. identity of the applicant and a description of the volume and
the value of his domestic production of the product under consideration; information on
his percentage share to total domestic production;
ii. a list of known domestic producers of the product under
consideration and , if possible, a description of the volume and value of domestic
production of the product under consideration accounted for by such producers, if the
application is made on behalf of the domestic industry;
iii. complete description of the imported product under
consideration, specifying the Harmonized System (HS) Code under which such product is
classified, the present tariff rates (MFN and preferential rates), and the complete
description of the like or directly competitive domestic product concerned;
iv. names of the countries of export or origin of the product
under consideration;
v. identity of all known foreign exporters or producers of the
product under consideration, or their duly authorized representative organizations;
vi. list of known persons importing the product with their last
known addresses;
vii. information on the volume and value of imports1
and other relevant industry data, for the last five (5) years preceding the date of
application, to support allegations of the consequent impact of the increased importation
of the product under consideration on the domestic industry demonstrated by relevant
factors and indices having a bearing on the state of the domestic industry as enumerated
in Rule 12 of these IRRS;
viii. statement on the form and duration of the safeguard
measures sought;
ix. statement of the efforts being taken and/or to be taken, by
the domestic industry (including other concerned parties) to make a positive adjustment to
import competition.
1Information on the volume and value of
imports shall include those products imported duty-free and those importation's made by
the government
Rule 6.2.c. If provisional safeguard measures are sought, petitioner must
show that critical circumstances exist which warrant the imposition of such provisional
relief. In addition to the information mentioned above, the petitioner must also submit
the following;
i. statement requesting for the imposition of a provisional measure;
ii. impact on the domestic industry if imports continue within the next sixty
(60) days of the filing of the petition; and
iii. statement on the form and amount of provisional measure sought by the
industry. In the case of agricultural products, the type of measure and the rate or level
sought, where applicable. In the case of nonagricultural products, the type and rate of
tariff sought.
Rule 6.2.d. The application shall include a certification signed by the
applicant that the information presented therein is accurate and complete to the best of
his knowledge.
Rule 6.3. Procedures for Filing Rule
Rule 6.3.a. The petition shall be filed with the Secretary of Trade and
Industry in the case of a non-agricultural product, or with the Secretary of
Agriculture in the case of an agricultural product.
Rule 6.3.b. The Secretary shall preliminarily screen the application if
the following conditions are met:
i. The application is signed;
ii. All relevant questions are answered or the reasons for the
absence of information are given; and
iii. The attachments to the application are complete.
Rule 6.3.c. Failure to supply all the information sought
in the application will lead to the non-acceptance thereof. The Secretary shall check the
consistency of the information provided in the application against other information
available to him. The Secretary shall clarify any unclear or ambiguous statement with the
applicant.
Rule 6.3.d. As soon as the requirements are completed, the Secretary
shall acknowledge in writing that he has already accepted a properly documented
application. The date of the Secretary's letter shall be considered as day zero (0) of the
five (5) calendar days within which he is required to determine whether there is
sufficient evidence to justify the initiation of an investigation. The Secretary shall
issue the letter as soon as practicable from his receipt of a properly documented
application. If the applicant decides to give the Secretary further information in support
of an application, the five (5) day period herein mentioned shall recommence from the date
of the submission of the new information. After this period, the Secretary shall no longer
entertain any information that may be provided by the applicant.
Rule 6.4. Requirements for Initiation of Preliminary Determination
Rule 6.4.a. The Secretary shall, within five (5) calendar days from the
date of his letter of acceptance of the properly documented application referred to
in Rule 6.3.d, examine the accuracy and adequacy of the evidence submitted to determine
the existence of a prima facie case that will justify the initiation of a
preliminary investigation. In assessing the sufficiency of evidence provided in the
application, the Secretary shall satisfy himself that based on the documents available to
him, he can determine that the increased imports of the product under consideration are
the substantial cause of the serious injury or threat thereof to the domestic producers of
the product under consideration.
Rule 6.4.b. The Secretary may also initiate action upon the request of
the President or a resolution of the House or Senate Committee on Agriculture, or House or
Senate Committee on Trade and Commerce.
Rule 6.4.c. The Secretary may also motu proprio, initiate a
preliminary safeguard investigation without having received a verified petition by or on
behalf of a domestic industry if there is evidence that increased imports are a
substantial cause of, or threatens to substantially cause, serious injury to the domestic
industry.
Rule 6.4.d. All persons who have a right to relief or who
will be adversely affected by such relief with respect to the alleged import surges
claimed to exist may, upon the discretion of the Secretary or the Commission, join as
petitioners or be joined as respondents in one (1) petition, where any question of law or
fact common to all such respondents may arise in such action.
Rule 6.5. Notice to Concerned Parties and Submission of Responses
Rule 6.5.a. Within two (2) calendar days after he makes the decision to
initiate a preliminary investigation, the Secretary shall cause the publication of the
notice of initiation of preliminary investigation in two (2) newspapers of general
circulation. The date of publication shall be considered as day one -(1) of the initiation
of the investigation.
The public notice of the initiation of an investigation shall contain, unless
otherwise made available through a separate report, adequate information on the following
matters:
1 . The nature of the product under consideration;
2. A summary of the particulars of the injury or threat thereof;
3. The time frame for the submission of evidence or views to the Secretary;
4. The date of the initiation of the investigation; and
5. The address to which representations by interested parties shall be directed.
Rule 6.5.b. Within two (2) calendar days after he makes the decision to
initiate the preliminary investigation, the Secretary shall:
1. Identify all known interested parties i.e. importer, foreign exporter and/or
producer, including the government of the exporting countries concerned, and notify them
of the initiation of the investigation;
2. Furnish them with a copy of the initiation report and the petitioners
application with its annexes, subject to the requirement to protect confidential
information; and
3. Provide them with a proforma respondent's questionnaire.
The respondents are required to submit within five (5) working
days from the receipt of such notice their response or comment and other evidence and
information to dispute all allegations contained in the petition. The notice shall be
deemed to have been received five (5) working days from the date on which it was
transmitted to the respondent or the appropriate diplomatic or official representative of
the country of export or origin of the product under consideration. In cases where the
number of known interested parties is so large that it is impractical to provide a
non-confidential copy of the documents to each of them, a copy will be given to the
government of the country of export or origin and/or to the representative organizations.
These documents shall also be made available to other interested parties upon request.
Philippine trade or agriculture attaches and other consular
officials in the concerned country of export or origin may also be provided a copy of the
notice of initiation.
Rule 6.5.c. Whenever any interested party fails to
respond adequately or is unable to produce information requested, refuses access to, or
otherwise does not provide any other information within the period allowed for the
investigation, or otherwise significantly impedes the investigation, the preliminary
determination of the conditions required in a safeguard investigation shall proceed on the
basis of facts derived from the evidence at hand. Even though the information provided by
any interested party may not be complete in all respects, this shall not be disregarded
provided the interested party Is deemed to have acted to the beet of his ability.
Rule 6.5.d. If any evidence or information is not accepted by the
Secretary, the supplying party shall be informed forthwith of the reason/s therefor, and
shall be given an opportunity to provide further explanation. Provided, that this will not
impede the investigation considering the period required for the Secretary to make a
preliminary determination. If the explanations are not satisfactory, the reasons for the
rejection of such evidence or information shall be given in the report containing the
preliminary determination.
Rule 6.5.e. Information which is confidential, either by
nature or provided on a confidential basis, shall not be disclosed without the expressed
permission of the supplying party. The interested parties providing confidential
information shall be required to provide two (2) copies of non-confidential summaries
thereof to be placed in a public file and made available to all interested parties upon
the initiation of the investigation. These summaries shall contain sufficient details to
permit a reasonable understanding of the confidential information to enable other parties
to respond to claims based on such information. In exceptional circumstances, wherein
summarization of confidential information is not possible, the supplying party must state
the reason why it cannot be provided. Where any request for confidentiality is not
warranted or the supplier of the information is either unwilling to make the information
public or to authorize its disclosure in generalized or summary form, such information may
be disregarded by the Secretary, unless it can be demonstrated to the Secretary’s
satisfaction from appropriate sources that the information is correct.
The following information may be considered
confidential if so designated by the supplying party:
1. business or trade secrets concerning the
nature of the product or the production process;
2. production costs but not the identities of the production
components, unless these are trade secrets;
3. distribution costs but not the channels of distribution;
4. terms of sale but not those offered to the public;
5. prices of individual sales, likely sales, or other offers
but not components of prices, such as transportation, if based on published schedules,
dates of sale, order numbers, or product descriptions (other than business or trade
secrets described in (1);
6. names of particular customers, distributors, or suppliers but not
destinations of sale or designation of type of customer, distributor or supplier, unless
the destination or designation would reveal the name;
7. names of particular persons from whom confidential
information was obtained; and
8. any other specific business information which, if released to the public,
would cause substantial harm to the competitive position of the supplying party.
Rule 6.5.f. A public file shall be
maintained by the Secretary and the Commission for all investigations initiated. It shall
contain a copy of all submissions from interested parties and all relevant correspondences
concerning the investigation, subject to confidentiality considerations. The public file
will be made available to any interested party upon request.
The following will normally be considered as public information:
1 . Factual information of a type that has been published or otherwise made
available to the public by the supplying party;
2. Factual information that is not designated as confidential by the supplying
party;
3. Factual information that although designated as confidential by the supplying
party:
(i) is in a form that cannot be associated with a particular party; or
(ii) has been determined by the authorities as not deserving confidential
treatment; and
4. Written arguments relating to the investigation that are not
designated as confidential.
Rule 6.5.g. In order to verify information contained
in the application or to obtain further details, the Secretary or the Secretary's
designated representative may conduct visits, or ocular inspections of the facilities of
the domestic producers and importers. The Secretary or the Secretary's designated
representative may also visit other domestic producers and importers that have not
provided submissions during the investigation.
Section 7. Preliminary
Determination. - Not later than thirty (30) days from receipt of the petition or a
motu proprio initiation of the preliminary safeguard investigation, the Secretary
shall, on the basis of the evidence and submission of the interested parties, make
a preliminary determination that increased imports of the product under
consideration are a substantial cause of, or threaten to substantially cause, serious
injury to the domestic industry. In the process of conducting a preliminary
determination, the Secretary shall notify the interested parties and shall require
them to submit their answers within five (5) working days from receipt of such
notice. The notice shall be deemed received five (5) working days from the date of
transmittal to the respondent or appropriate diplomatic representative of the
country of exportation or origin of the imported product under consideration.
When information is not applied within the
above time limit set by the
Secretary or if the investigation is significantly
impeded, decision will be based on the facts derived from the evidence at hand.
Upon a positive preliminary determination
that increased importation of the product under consideration is a substantial
cause of, or threatens to substantially cause, serious injury to the domestic
industry, the Secretary shall, without delay, transmit its record to the Commission
for immediate formal investigation.
Rule 7. Preliminary Determination
Rule 7.1. Not later than thirty (30) calendar days from
receipt of the properly documented application or a motu proprio initiation of the
preliminary safeguard investigation, the Secretary shall, on the basis of the petition,
the answers of the respondents, and the respective supporting documents or information,
make a preliminary determination that increased imports of the product under consideration
are a substantial cause of, or threaten to substantially cause, serious injury to the
domestic industry.
Rule 7.2. The Secretary shall essentially determine the following in the
preliminary determination:
Rule 7.2.a. The volume imports2 in particular, whether there
has been an increase, either in absolute terms or relative to production in the
Philippines. The Secretary shall evaluate import data for the last five (5) years
preceding the application to substantiate claims of significant increase in import volume.
Provided, however, that in some cases, the period maybe adjusted to cover a shorter
period, if necessary, in order to take into account other considerations that will ensure
the appropriateness of the chosen period, e.g., seasonally of product, availability of
data or facility in verification of data;
Rule 7.2.b. Presence and extent of serious injury or threat thereof to
the domestic industry producing the like or directly competitive product; and
Rule 7.2.c. Causal relationship between the increased imports of the
product under consideration and the serious injury or threat thereof to the affected
domestic industry.
Rule 7.2.d. The Secretary shall take into account the effects of the
seasonality of products, whenever applicable, in the preliminary determination of whether
or not the elements for the imposition of a provisional safeguard measure exist.
Rule 7.3. In a preliminary determination under
critical circumstances, the Secretary shall establish that there has been a substantial
increase in imports taking into account their volume and whether or not there has been a
rapid accumulation of inventories of the domestic product and a reduction in sales and
profit margins of the domestic industry.
Rule 7.4. The preliminary findings of the Secretary,
if affirmative, together with the records of the case, shall without delay be transmitted
to the Commission for its immediate formal investigation within three (3) calendar days
from adopting the decision. However, if the preliminary findings of the Secretary are
negative, the Secretary shall terminate the investigation.
_________________
2 Information on volume of imports
shall include those products imported duty-free and importation's made by the
government.
Rule 7.5. Within two (2) calendar days after the
Secretary makes his decision, he shall issue a public notice on his preliminary findings.
He shall also furnish all interested parties on record a copy of his decision, subject to
the requirement to protect confidential information, whether affirmative or negative.
Section 8.
Provisional Measures. - In
critical circumstances where a delay would cause damage which would be difficult to
repair, and pursuant to a preliminary determination that increased imports are
substantial cause of, threaten to substantially cause, serious injury to the
domestic industry, the Secretary shall immediately issue, through the Secretary of
Finance, a written instruction to the Commissioner of Customs authorizing the
imposition of a provisional general safeguard measure.
Such measure shall take the form of a tariff increase, either
ad valorem or specific, or both, to be paid out through a cash bond set at a level
sufficient to redress or prevent injury to the domestic industry: Provided,
however, that 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 set. line cash bond shall be
deposited with a government depository bank and shall be held in trust for the who
posted the bond. The duration of the provisional measure shall not exceed two
hundred (200) days from the date of imposition during which period the requirements
of the subsequent sections of this Act on the initiation of a formal investigation,
notification and consultation shall have been met: Provided, That the duration of any
provisional measure shall be counted as part of the initial period and any extension
of the imposition of the definitive final safeguard measure.
When the provisional safeguard measure is in the form of a
tariff increase, such increase shall not be subject or limited to the maximum
levels of tariff as set forth in Section 401 (a) of the Tariff and Customs Code of
the Philippines. When the provisional safeguard measure is in the form of a
tariff increase, such increase shall not be subject or limited to the maximum
levels of tariff as set forth in Section 401 (a) of the Tariff and Customs Code of
the Philippines.
Rule 8. Imposition of Provisional Safeguard Measures
Rule 8.1. If the preliminary findings of the Secretary are affirmative
and where a delay would cause damage which would be difficult to repair, the Secretary
shall, within three (3) calendar days from making a decision, issue through the Secretary
of Finance, written instructions to the Commissioner of Customs authorizing the imposition
of a provisional general safeguard measure. Such measure shall 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.
Rule 8.2. However, 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.
Rule 8.3. 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 set. In implementing
such quantitative restriction, the requirements under Rule 13. 1.c shall likewise apply.
Rule 8.4. When the provisional safeguard measure is in
the form of a tariff increase, such increase shall not be subject or limited to the
maximum levels of tariff as set forth in Section 401 (a) of the Tariff and Customs Code of
the Philippines.
Rule 8.5. Within three (3) calendar days from receipt of
the preliminary findings of the Secretary, the Secretary of Finance shall instruct the
Commissioner of Customs to impose the cash bond. It shall be mandatory for the
Commissioner of Customs to instruct the Collector of Customs within three (3) days from
receipt of instructions from the Secretary of Finance, to require importers of the product
under consideration to post the appropriate cash bond. All importation's which enter the
Philippines after the date of the decision of the Secretary shall be covered by the
bond. It shall also be mandatory for the Collector of Customs to immediately implement the
instructions of the Customs Commissioner upon receipt thereof.
Rule 8.6. The cash bond shall be deposited with a government
depository bank and shall be held in trust for the importers who posted the bond.
Rule 8.7. The duration of the provisional measure shall
not exceed two hundred (200) calendar days from the date of imposition during which
period the requirements of subsequent sections of these IRRs on the initiation of a formal
investigation, notification and consultation shall have been met. Provided, that the
duration of any provisional measure shall be counted as part of the initial period, and
any extension, of the imposition of the definitive final safeguard measure.
Rule 8.8. The provisional safeguard measure shall not be applied to a
product originating from a developing country if its share to total Philippine imports of
the said product is less than three percent (3%): Provided, however, that developing
countries with less than three percent (3%) share collectively account for not more than
nine percent (9%) of the total Philippine imports of the product concerned.
Section 9. Formal Investigation. - Within five (5)
working days,from receipt of the request from the Secretary, the Commission shall
publish the notice of the commencement of the investigation, and public hearings
which shall afford interested parties and consumers an opportunity to be present,
or to present evidence, to respond to the presentation of other parties and
consumers, and otherwise be heard. Evidence and positions with respect to the
importation of the subject article shall be submitted to the Commission within
fifteen (15) days after the initiation of the investigation by the Commission.
The Commission shall complete its investigation and submit
its report to the Secretary within one hundred twenty (120) calendar days from
receipt of the referral by the Secretary, except when the Secretary certifies that
the same is urgent, in which case the Commission shall complete the investigation
and submit the report to the Secretary within sixty (60) days.
Rule 9. Formal Investigation of the Tariff Commission
Rule 9.1. Within five (5) working days from receipt of the request and
the records of the case from the Secretary, the Commission shall publish in two (2)
newspapers of general circulation the notice of the commencement of the formal
investigation, and the date, time and place of the preliminary conference preparatory to
the conduct of public hearings.
The purpose of the public hearings is to determine whether or not the subject
product is being imported in increased quantities, whether absolute or relative to the
domestic production and by reason thereof, the domestic industry producing the like or
directly competitive product is being seriously injured.
Rule 9.2. The Commission shall require all interested parties to appear
for a preliminary conference on the schedules of the public hearing and the
procedures of the investigation, the nature of the administrative and fact-finding
proceedings; the non applicability of the technical rules of procedures provided by the
Rules of Court, the non-availability of confidential information, and other related
matters relative to the speedy disposition of the case and shall require them to submit
their respective evidence and positions within fifteen (15) working days from notice.
Rule 9.3. The Commission shall, after due notification, conduct marathon
public hearings to give all parties directly affected and such other interested parties as
consumers that in the judgment of the Commission are entitled to attend, an opportunity to
be heard and to present evidence including the opportunity to respond to the presentations
of other parties and to submit their views, inter alia, as to whether or not the
application of a safeguard measure would be in the public interest.
Rule 9.4. The Commission shall conduct the formal investigation to
determine the following: Rule 9.4. The Commission shall conduct the formal investigation to
determine the following: Rule 9.4. The Commission shall conduct the formal investigation to
determine the following:
Rule 9.4.a. If the domestic product is a like or directly competitive
product to the imported product under consideration;
Rule 9.4.b. If the product is being imported into the Philippines in
increased quantities whether absolute or relative to the domestic production;
Rule 9.4.c. The presence and extent of serious injury or the threat
thereof to the domestic industry that produces like or directly competitive product; and
Rule 9.4.d. The existence of a causal relationship between the increased
imports of the product under consideration and the serious injury or threat thereof to the
affected domestic industry.
Rule 9.5. The formal investigation shall be conducted in a summary
manner. No dilatory tactics or unnecessary or unjustified delays shall be allowed and the
technical rules of evidence used in regular court proceedings shall not be applied.
Rule 9.6. The Commission shall conclude its formal investigation and
submit a report of its findings and reasoned conclusions, whether favorable or not, to the
Secretary within one hundred twenty (120) calendar days from receipt of the request from
the Secretary, except when the Secretary certifies that the same is urgent, in which case
the Commission shall complete the investigation and submit the report to the Secretary
within sixty (60) calendar days.
Section 10. Inspection of Evidence.
- The Commission shall make available for inspection bv interested parties, copies
of all evidence submitted on or before the relevant due date: Provided, however,
That any information which is by nature confidential or which is provided on a
confidential basis, shall, upon cause being shown, not be disclosed without
permission of the party submitting it. Parties providing confidential information
may be requested to furnish non-confidential summaries thereof or if such parties
indicate that such information cannot be summarized, the reasons why a summary
cannot be provided: Provided, further, That, the Commission finds that a request
for confidentiality is not warranted and if that party concerned is either
unwilling to make the information public or to authorize its disclosure in
generalized or summary form, the Commission may disregard such information unless
it can be demonstrated to its satisfaction from appropriate sources that the
information is correct.
Rule 10 . Inspection of Evidence
Rule 10.1. Any interested party shall, when required,
allow the Commission access to necessary information, or otherwise provide the necessary
information to enable the Commission to expedite the investigation. Visits or inspections
may be conducted by the Commission even without the presence of interested parties. Rule 10.1. Any interested party shall, when required,
allow the Commission access to necessary information, or otherwise provide the necessary
information to enable the Commission to expedite the investigation. Visits or inspections
may be conducted by the Commission even without the presence of interested parties.
Rule 10.2. The Commission shall make available for
inspection by interested parties, copies of all evidence submitted on or before the
relevant due date: Provided, however, That any information which is by nature confidential
or which is provided on a confidential basis, shall upon cause being shown, not be
disclosed without permission of the party submitting it. Parties providing confidential
information may be requested to furnish non-confidential summaries thereof or if such
parties indicate that such information cannot be summarized, the reasons why a summary
cannot be provided. However, if the Commission finds that a request for
confidentiality is not warranted and the supplier of the information is either unwilling
to make the information public or to authorize its disclosure in generalized or summary
form, the Commission may disregard such information unless it can be demonstrated
to the Commission's satisfaction from appropriate sources that the information is correct.
Section 11. Adjustment Plan. - In the course of
its investigation, the Commission shall issue appropriate notice to representatives of the
concerned domestic industry or other parties, to submit an adjustment plan to
import competition, within forty five (45) days upon receipt of the notice, except when
the Secretary certifies that the same is urgent, in which case the adjustment plan must be
submitted within thirty (30) days.
If the Commission makes an
affirmative determination of injury or threat thereof, individual commitments
regarding actions such persons and entities intend to take to facilitate positive
adjustment to import competition shall be submitted to the Commission by any (a)
firm in the domestic industry, (b) certified or recognized union or group of
workers in the domestic industry, (c) local community, (d) trade association
representing the domestic industry, or (e) other person or group of persons.
Rule 11. Adjustment Plan
Rule 11.1. In the course of its investigation, the Commission shall issue
appropriate notice to representatives of the concerned domestic industry or other
concerned parties, to submit an adjustment plan to import competition, within forty-five
(45) calendar days upon receipt of the notice.
Rule 11.2. When the Secretary certifies that the investigation is urgent,
the adjustment plan must be submitted within thirty (30) calendar days upon receipt
of the notice.
Rule 11.3. If the Commission makes an affirmative determination of
serious injury or threat thereof, individual commitments regarding actions such persons
and entities intend to take to facilitate positive adjustment to import competition shall
be submitted to the Commission by any:
Rule 11.3.a. firm in the domestic industry,
Rule 11.3.b. certified or recognized union or group of workers
in the domestic industry,
Rule 11. 3.c. local community,
Rule 11.3.d. trade association representing the domestic
industry, and
Rule 11.3.e.other person or group of persons who stand
to benefit from the imposition of safeguard measures.
Rule 11.4. The adjustment plan shall provide a clear quantification of
its proposed goals and detail the efforts that the domestic industry and other concerned
parties will make to place the domestic industry in a more competitive position.
The goals shall be presented using objectively verifiable indicators that will cover the
period for which safeguard measures are sought. Measures covering more than one year shall
include specific efforts to be undertaken by the domestic industry for each year of
progressive liberalization of the measure. It shall likewise include a time frame to
enable the Commission to monitor their attainment over the specified period.
Section 12. Determination of Serious
Injury or Threat Thereof. - In reaching a positive determination that the increase
in the importation of the product under consideration is causing serious injury or threat
thereof to a domestic industry producing like products or directly competitive products,
all relevant factors having bearing on the situation of the domestic industry shall be
evaluated. 7hese shall include, in particular, the rate and amount of the increase in
imports of the products concerned in absolute and relative terms, the share of the
domestic market taken by the increased imports, and changes in the level of sales,
production, productivity, capacity utilization, profits and losses, and employment.
Such positive determination shall not be made unless the
investigation demonstrates on the basis of objective evidence, the absence of the causal
link between the increased imports of the product under consideration and serious injury
or threat thereof to the domestic industry. When factors other than increased imports are
causing injury, such injury shall not be attributed to increased imports.
Rule 12. Determination of Serious Injury or Threat Thereof
Rule 12.1. The Secretary and the Commission, at their respective stages
of investigation, shall determine the presence and extent of serious injury or threat
thereof to the domestic industry as a result of the increased importation of the products
under consideration on the basis of positive evidence and shall require an objective
examination of, but shall not be limited to, the following:
Rule 12.1.a.The rate and amount of the increase in imports
of the products under consideration in absolute or relative terms;
Rule 12.1.b.The share of the domestic market taken by
the increased imports; and
Rule 12.1.c. Changes in the level of sales, prices, production,
productivity, capacity utilization, inventories, profits and losses, wages and employment
of the domestic industry.
The Secretary and the Commission, at their respective stages of
investigation, shall valuate information on injury and increased imports covering the
previous five (5) year period prior to the submission of the application. If the
submission was made in the second semester of the current year, the information shall
cover the previous five (5) years and the period of the current year for which statistical
information is available. Provided, however, that in some cases, the period may be
adjusted to cover a shorter period in order to take into account other considerations that
will ensure the appropriateness of the chosen period, e.g., seasonality of product,
availability of data, or facility in the verification of data.
Rule 12.2. In making their determination with respect to serious injury,
the Secretary and the Commission, at their respective stages of investigation, shall take
into account all economic factors which they consider relevant, including but not limited
to:
Rule 12.2.a. significant idling of productive facilities in the domestic
industry including the closure of plants or underutilization of production
capacity
Rule 12.2.b. inability of a significant number of firms to carry out
domestic production at a profit; and
Rule 12.2.c.significant unemployment or underemployment
within the domestic industry.
Rule 12.3. A determination of threat of serious injury
shall be based on facts and not merely on allegations, conjectures or remote
possibilities. In making a determination regarding the existence of a threat of serious
injury, the Secretary and the Commission, at their respective stages of investigation,
shall consider the following among others:
Rule 12.3.a. 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;
Rule 12.3.b. 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;
Rule 12.3.c. 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 maintain existing levels of expenditures for research and development;
and
Rule 12.3.d. growing inventories of the product being investigated
whether maintained by the Philippine producers, importers, wholesalers or retailers.
Not one of these factors can, by itself, necessarily give
decisive guidance, but the totality of the factors considered must lead to the conclusion
that further increased imports are imminent and that, unless protective action is taken,
serious injury would occur.
Rule 12.4. In making determination with respect to substantial cause, the
Secretary and the Commission, at their respective stages of investigation, shall take into
account the effects of the increased imports on the economic factors and indices relating
to the injury as supplied by the domestic industry.
Rule 12.5. The extent of injury caused by the importation of the products
on the domestic industry shall be determined by the Secretary and the Commission, at their
respective stages of investigation, upon examination of all relevant evidence. Such
determination shall not be made unless the investigation demonstrates, on the basis of
objective evidence, the existence of the causal link between the increased imports of the
product under consideration and serious injury or threat thereof to the domestic industry.
Any known factors, other than the increased importation of the products under
consideration, which at the same time injure the domestic industry, shall also be examined
and the injuries caused by these factors must not be attributed to the increased
importation of the product under consideration.
Rule 12.6.The effects of the
increased imports of the product under consideration shall be assessed in relation to the
domestic production of the like or directly competitive product by separate identification
of that production based on such criteria as production processes, sales, and profits. If
such is not possible, the effects of the increased imports of the product under
consideration shall be assessed by toe examination of the production of the narrowest
group or range of products which includes the like or directly competitive product for
which the necessary information is available.
Section 13. Adoption of Definitive
Measures. - Upon its positive determination, the Commission shall recommend to
the Secretary an appropriate definitive measure, in the form of:
(a) An increase in, or imposition of, any duty on the imported product;
(b) A decrease in or the imposition of a tariff-rate quota MAV) on the product;
(c) A 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;
(e) Any combination of actions described in subparagraphs (a) to (d).
The Commission may also recommend other actions, including
the initiation of international negotiations to address the underlying cause of the
increase of imports of the product, to alleviate the injury or threat thereof to the
domestic industry, and to facilitate positive adjustment to import competition.
The general safeguard measure shall be limited to the extent
of redressing or preventing the injury and to facilitate adjustment by the domestic
industry from the adverse, effects directly attributed to the increased imports: Provided,
however, That 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.
A general safeguard measure shall not be applied to a product
originating from a developing country if its share of total imports of the product is less
than three percent (3%): Provided, however, 7hal developing countries with less than three
percent (3%) share collectively account for not more than nine percent (9%) of the total
imports.
The decision imposing a general safeguard measure, the
duration of which is more than one (1) year, shall be reviewed at regular intervals for
purposes of liberalizing or reducing its intensity. The industry benefiting from the
application of a general safeguard measure shall be required to show positive adjustment
within the allowable period. A general safeguard measure shall be terminated where the
benefiting industry fails to show any improvement, as may be determined by the Secretary.
The Secretary shall issue a written instruction to the heads
of the concerned government agencies to implement the appropriate general safeguard
measure as determined by the Secretary within fifteen (15) days from receipt of the
report.
In the event of a negative final determination, or if the
cash bond is in excess of the definitive safeguard duly assessed, the Secretary shall
immediately issue, through the Secretary of Finance, a written instruction to the
Commissioner of Customs, authorizing the return of the cash bond or the remainder thereof
as the case may be, previously collected as provisional general safeguard measure within
ten (10) days from the date a final decision has been made: Provided, That the government
shall not be liable for any interest on the amount to be returned. The Secretary shall not
accept for consideration another petition from the same industry, with respect to
the same imports of the product under consideration within one (1) year after the date of
rendering such a decision.
When the definitive safeguard measure is in the form of a
tariff increase, such increase shall not be subject or limited to the maximum levels of
tariff as set forth in Section 401 (a) of the Tariff and Customs Code of the Philippines.
Rule 13. Adoption of Definitive Measures
Rule 13.1. Recommendation of the Commission:
Rule 13.1.a. Upon its positive determination, the Commission shall
recommend to the Secretary an appropriate definitive measure, in the form of:
i) An increase in, or imposition of, any duty on the imported product;
ii) A decrease in or the imposition of a tariff-rate quota (MAV) on the
product;
iii) A modification or imposition of any quantitative restriction on the
importation of the product into the Philippines;
iv) One or more appropriate adjustment measures, including the provision of
trade adjustment assistance; or
v) Any combination of actions described 1 in subparagraphs (i) to (iv).
Rule 13.1.b. The Commission may also recommend other actions including
the initiation of international negotiations to address the underlying cause in the
increase of imports of the product, relief to the domestic industry to alleviate the
injury or threat thereof, and to facilitate positive adjustment to import competition.
Rule 13.1.c. The general safeguard measure shall be limited to the extent
of redressing or preventing the injury and to facilitate adjustment by the domestic
industry from the adverse effects directly attributed to the increased imports. Provided,
however, That 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 serious injury.
The Secretary shall set up a transparent mechanism for the implementation of the
quota allocation system under these IRRS.
Rule 13.1.d. A general safeguard measure shall not be
applied to a product originating from a developing country if its share to total
Philippine imports of the said product is less than three percent (3%): Provided, however,
That developing countries with less than three percent (3%) share collectively account for
not more than nine percent (9%) of the total Philippine imports of the product concerned.
Rule 13.1.e. When the definitive safeguard measure is in the form of a
tariff increase, such increase shall not be subject or limited to the maximum levels of
tariff as set forth in Section 401 (a) of the Tariff and Customs Code of the
Philippines.
Rule 13. 2. Final Determination by the Secretary
Rule 13.2.a. 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.
Rule 13.2.b. 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 immediately implement the
appropriate general safeguard measure as determined by him. Provided, however, that in the
case of nonagricultural products, the Secretary shall first establish that the imposition
of the safeguard measure will be in the public interest.
Rule 13.2.c. Within two (2) calendar days after making
his decision, the Secretary shall also order its publication in two (2) newspapers of
general circulation. He shall also furnish a copy of his Order to the petitioner and other
interested parties, whether affirmative or negative.
Rule 13.3. Notice to the Secretary of Finance
Rule 13.3.a. The Secretary shall, within two (2) calendar
days from making the decision, furnish the Secretary of Finance with the copy of the Order
requesting the latter to direct the Commissioner of Customs to collect the definitive
safeguard duty or, in the case the definitive safeguard measure is in the form of a tariff
rate-quota or quantitative restriction, to require the importer to present the relevant
import clearance or authority for the product under consideration. The Secretary of
Finance shall, within three (3) calendar days from receipt of the copy of the Order of the
Secretary, direct the Commissioner of Customs to impose the definitive safeguard duty or
require the importer to present the relevant import clearance or authority for the product
concerned.
Rule 13.3.b. It shall be mandatory for the Commissioner of Customs to
issue within three (3) calendar days from receipt of the Order of the Secretary of
Finance, an instruction to the Collector of Customs to proceed with the final appraisement
of the product under consideration. It shall also be mandatory for the Collector of
Customs to immediately implement the instructions of the Customs Commissioner upon receipt
thereof. On the first week of each month, the Commissioner of Customs shall submit to the
Secretary, through the Secretary of Finance, a certified report on the disposition of the
cash bond and the amount of the safeguard duty collected for the previous month.
Rule 13.3.c. In case a cash bond has been filed, the same shall be
applied to the safeguard duty assessed. In case of a negative finding or if the cash bond
is in excess of the definitive safeguard duty assessed, the remainder shall be immediately
returned to the importer within ten (10) calendar days from the date a final decision has
been made: Provided, That no interest shall be payable by the government on the amount to
be returned.
Section 14. Contents of the Report by the Commission.
-
Based
on its findings, the Commission shall submit to the Secretary: (a) the investigation
report; (b) the proposed recommendations; (c) a copy of the submitted adjustment plan; and
(d) the commitments made by the domestic industry to facilitate positive adjustment to
import competition.
Section 14. Contents of the Report by the Commission. -
Based
on its findings, the Commission shall submit to the Secretary: (a) the investigation
report; (b) the proposed recommendations; (c) a copy of the submitted adjustment plan; and
(d) the commitments made by the domestic industry to facilitate positive adjustment to
import competition.
The report shall also include a description of the short and
long-term effects of the affirmative or negative recommendations, as the case may be, on
the petitioner, the domestic industries, the consumers, the workers, and the communities
where production facilities of such industry are located.
The Commission, after submitting the report to the Secretary,
shall make it available to the public except confidential information obtained under
Section 10 and publish a summary in two (2) newspapers of general circulation.
Rule 14.1. Contents of the Report by the Commission:
Rule 14.1.a. The Commission shall submit to the Secretary: (a) the
investigation report; (b) the proposed recommendations and the reasons for such
recommendations; (c) a copy of the submitted adjustment plan; and (d) the commitments made
by the domestic industry and other concerned parties to facilitate positive adjustment to
import competition.
Rule 14.1.b. The report shall also include a description
of the short and long-terms effects of the affirmative or negative recommendation, as the
case may be, on the petitioner, the domestic industries, the consumers, the workers, and
the communities where production facilities of such industry are located.
Rule 14.2. Publication of the Summary Report of the
Commission
The Commission, after submitting the report to the Secretary,
shall make it available to the public except confidential information obtained under Rule
10, and publish a summary in two (2) newspapers of general circulation.
Section 15. Limitations on Actions. - the
duration of the period of an action taken under the General Safeguard Provisions of this
Act shall not exceed four (4) years. Such period shall include the period, if any,
in which provisional safeguard relief under Section 8 was in effect.
The effective period of any safeguard
measure, including any extensions thereof under Section 19 may not, in the
aggregate, exceed ten (10) years.
(1) Any additional duly, or any duty imposed under this
Section may be specific and/or ad valorem. It shall be in the amount necessary to
prevent or redress or remedy the injury to the domestic industry;
(2) If a quantitative restriction is used, such measure
shall not reduce the quantity of imports below the level of a recent period which
shall be the average of imports in the last three (3) representative years for
which statistic are available, unless clear justification is given that a different
level is necessary to prevent or remedy serious injury,
(3) An action described in Section 13 (a), (b), or (c)
that has an affective period of more than one (1) year shall be phased down at
regular intervals within the period in which the action is in effect;
(4) Within two (2) years after the expiration of the action, the
Secretary shall not accept any further petition for the same article: Provided,
however, 7hat a safeguard measure with a duration of one hundred eighty (180)
days or less may be applied again to the same product if:
(i) At least one (1) year has elapsed since the date
of introduction Of the safeguard measure; and
(ii) Such measure has not been applied on the same
product more than twice in the live (5) year period immediately preceding the date
of introduction of the measure.
Rule 15. Duration of the General Safeguard
Measures
Rule 15.1. The duration of the period in which an action
is taken under the General Safeguard Measures provisions of these IRRs shall not exceed
four (4) years. Such period shall include the period, if any, in which provisional relief
under Rule 8 was in effect.
Rule 15.2. The effective period of any
safeguard measure, including any extensions thereof under Rule 19 may not, in the
aggregate, exceed ten (10) years.
Rule 15.3. Any additional duty, or any duty imposed under
this Rule may be specific and/or ad valorem. It shall be in
the amount necessary to prevent, or redress, or remedy the injury to the domestic
industry;
Rule 15.4. If a quantitative restriction is used, such
measure shall not reduce the quantity of imports below the level of a recent period which
shall be the average of imports in the last three (3) representative years for which
statistic's are available, unless clear justification is given that a different
level is necessary to prevent or remedy serious injury.
Rule 15.5. Any action described in Rule 13 that has an
effective period of more than a year shall be phased down at regular intervals within the
period in which the action is in effect;
Rule 15.6. The decision imposing a general
safeguard measure, the duration of which is more than one (1) year, shall be reviewed at
regular intervals for purposes of liberalizing or reducing its intensity. The industry
benefiting from the application of a general safeguard measure shall be required to show
positive adjustment within the allowable period. A general safeguard measure shall be
terminated where the benefiting industry fails to show
any improvement, as may be determined by the Secretary.
Rule 15.7. The Secretary shall not accept for consideration another
petition from the same industry, with respect to the same imports of the product under
consideration within one (1) year after the date of rendering such decision.
Rule 15.8. Within two (2) years after the expiration of
the action, the Secretary shall not accept any further petition for the same product
Provided, however, That a safeguard measure with a duration of one hundred eighty (180)
days or less may be applied again to the same product if:
(i) At least one (1) year has elapsed since the introduction of the safeguard
measure; and
(ii) Such measure has not been applied on the same product more than twice in
the five (5) year period immediately preceding the date of introduction of the measure.
Section 16.
Monitoring -So long as any
action taken under, Section 13 remains in effect, the Commission shall monitor
developments with respect to the domestic industry, including the progress and
specific efforts made by workers and firms in the domestic industry to make a
positive adjustment to import competition.
(1) If the initial application of 'action taken under Section 13
exceeds three (3) years, or if an extension of such actions exceeds three (3)
years, the Commission shall submit to the Secretary a report on the results of monitoring,
not later than the date which is the midpoint of the initial period, and of each
such extension, during which the action is in effect.
(2) The Commission, in the preparation of each monitoring report, shall
conduct a hearing at which interested parties shall be given reasonable opportunity
to be present, to present evidence, and to be heard. (2) The Commission, in the preparation of each monitoring report, shall
conduct a hearing at which interested parties shall be given reasonable opportunity
to be present, to present evidence, and to be heard.
Rule 16. Monitoring of the Domestic Industry
Rule 16.1. So long as any action taken under Rule 13
remains in effect, the Commission shall monitor developments with respect to the domestic
industry, including the progress and specific efforts made by workers and firms in the
domestic industry to make a positive adjustment to import competition.
Rule 16.1.a. If the initial application of action taken under Rule 13
exceeds three (3) years, or if an extension of such action exceeds three (3) years, the
Commission shall submit to the Secretary, a report on the results of the monitoring, not
later than the date which is the midpoint of the initial period, and of each such
extension, during which the action is in effect.
Rule 16.1.b. The Commission, in the preparation of each monitoring
report, shall conduct a hearing at which interested parties, including the Department of
Labor and Employment, shall be given reasonable opportunity to be present, to present
evidence, and to be heard.
Section 17. Notice of
General
Safeguard Measure. - The Secretary shall notify the concerned Committee on
Safeguards of the World Trade Organization:
(a) When initiating an action relating to serious injury or threat
thereof and the reasons for it; (a) When initiating an action relating to serious injury or threat
thereof and the reasons for it;
(b) When adopting a provisional general safeguard measure Allowing a positive
preliminary determination; and
(c) When applying or extending a definitive general safeguard measure
following a positive final determination.
Rule 17. Notification to the WTO Committee on Safeguards
The Secretary shall notify the Committee on Safeguards of the World Trade
Organization:
Rule 17.1. When initiating an action relating to serious injury or threat
thereof and the reasons for it;
Rule 17.2. When adopting a provisional general safeguard measure
following a positive preliminary determination; and
Rule 17.3. When applying or extending a definitive general safeguard
measure following a positive final determination.
Section 18. Reduction, Modification, and Termination of Action.
- Action taken under Section 13 may be reduced, modified, or terminated by the
Secretary only after:
(a) Taking into account the results o the monitoring indicated in the report
submitted by the Commission under 1;action 1 6, he determines that:
(i) No adequate efforts to make a positive adjustment to import competition have
been undertaken by the domestic industry; and
(ii) Changed economic circumstances have impaired the
effectiveness of action taken under Section 13.
(b) A majority of the representatives of the domestic
industry submits to the Secretary, at least one (1) year before the expiration, a
petition requesting such reduction, modification, or termination on the basis that
the domestic industry has made a positive adjustment to import competition.
If reduction, modification, or
termination of action is being requested for an action that has been in effect for three
(3) years or less, the petitioning industry shall submit its request to the
Secretary. 7he Secretary shall refer the request to the Commission which shall
conduct an investigation following the procedures under Section 9, to be completed
within sixty (60) days from receipt of the request. The Commission shall submit a
report to the ,Secretary who shall then lake action after taking into
consideration conditions under Section 16 (1) and (2), not later than thirty (30)
days after receipt of the Commission's report.
Rule 18. Reduction, Modification and Termination of Action
Rule 18.1 Action taken under Rule 13 may be reduced, modified, or
terminated by the Secretary only after:
Rule 18.1.a. Taking into account the results of the monitoring
indicated in the report submitted by the Commission under Rule 16, he determines
that:
i. No adequate efforts to make a positive adjustment to import competition have
been undertaken by the domestic industry unless the domestic industry clearly
proves to the Secretary that no positive adjustment can be undertaken; and
ii. Changed economic circumstances have impaired the effectiveness of action
taken under Rule 13.
Rule 18.1.b. A majority of the representatives of the domestic industry
submits to the Secretary, at least one (1) year before the expiration, a petition
requesting such reduction, modification, or termination on the basis, that the domestic
industry has made a positive adjustment to import competition.
Rule 18.2. If reduction, modification or termination of
action is being requested for an action that has been in effect for three (3) years or
less, the petitioning industry shall submit its request to the Secretary. The Secretary
shall refer the request to the Commission which shall conduct an investigation following
the procedures under Rule 9, to be completed within sixty (60) calendar days from receipt
of the request. The Commission shall submit a report to the Secretary who shall then take
action after taking into consideration conditions under Rule 16, not later than thirty
(30) calendar days after receipt of the Commission's report.
Rule 18.3. In line with the provisions f Sections 2 and 5
of RA 8800 and Rule 5 of these IRRS, the Secretary may on his own motion instruct the
Commission to conduct a public hearing at which interested parties shall be given the
opportunity to present evidence and be heard, to determine the need for the reduction,
modification or termination of the action taken under Rule 13 of these IRRS. Rule 18.3. In line with the provisions f Sections 2 and 5
of RA 8800 and Rule 5 of these IRRS, the Secretary may on his own motion instruct the
Commission to conduct a public hearing at which interested parties shall be given the
opportunity to present evidence and be heard, to determine the need for the reduction,
modification or termination of the action taken under Rule 13 of these IRRS.
Section 19. Extension and Re-applications of
Safeguard Measure. -
(1) Subject to the review under Section 16,
an extension of the measure may be requested by the petitioner if the action
continues to be necessary to prevent or remedy the serious injury and there is
evidence that the domestic industry is making positive adjustment to import
competition.
(2) The petitioner may appeal to the Secretary at least
ninety (90) days before the expiration of the measure for an extension of the
period by stating concrete reasons for the need thereof and a description of the
industry's adjustment performance and future plan. The Secretary shall immediately
refer the request to the Commission. Following the procedures required under
Section 9, the Commission shall then submit a report to the Secretary not
later than sixty (60) days from its receipt of the request. Within seven (7) days
from receipt of the report, the Secretary shall issue an order granting or denying
the petition. In case an extension is granted, the same shall be more liberal than
the initial application.
Rule 19. Extension and Re-application of Safeguard Measures
Rule 19.1. Subject to the review under Rule 16, an
extension of the measure may be requested by the petitioner if the action continues to be
necessary to prevent or remedy the serious injury and there is evidence that the domestic
industry is making positive adjustment to import competition. Rule 19.1. Subject to the review under Rule 16, an
extension of the measure may be requested by the petitioner if the action continues to be
necessary to prevent or remedy the serious injury and there is evidence that the domestic
industry is making positive adjustment to import competition.
Rule 19.2. The petitioner may appeal to the Secretary at
least ninety (90) calendar days before the expiration of the measure for an extension of
the period by stating concrete reasons for the need and a description of the industry's
adjustment performance and future plan. The Secretary shall immediately refer the request
to the Commission. Following the procedures required under Rule 9, the Commission shall
then submit a report to the Secretary not later than sixty (60) calendar days from its
receipt of the request. Within seven (7) calendar days from receipt of the report, the
Secretary shall issue an Order granting or denying the petition. In case an extension is
granted, the same shall be more liberal than the initial application. Rule 19.2. The petitioner may appeal to the Secretary at
least ninety (90) calendar days before the expiration of the measure for an extension of
the period by stating concrete reasons for the need and a description of the industry's
adjustment performance and future plan. The Secretary shall immediately refer the request
to the Commission. Following the procedures required under Rule 9, the Commission shall
then submit a report to the Secretary not later than sixty (60) calendar days from its
receipt of the request. Within seven (7) calendar days from receipt of the report, the
Secretary shall issue an Order granting or denying the petition. In case an extension is
granted, the same shall be more liberal than the initial application.
Section 20. Evaluation of Effectiveness of
Action - After termination of any action under Section 13, the
Commission shall evaluate the effectiveness of the actions taken by the domestic industry
in facilitating positive adjustment to import competition. Section 20. Evaluation of Effectiveness of
Action - After termination of any action under Section 13, the
Commission shall evaluate the effectiveness of the actions taken by the domestic industry
in facilitating positive adjustment to import competition.
The Commission shall hold a public hearing
on the effectiveness of the action at which all interested parties shall be afforded
opportunity to present evidence or testimony.
Rule 20. Evaluation of Effectiveness of Action
Rule 20.1. After termination of any action under Rule 13,
the Commission shall evaluate the effectiveness of the actions taken by the domestic
industry in facilitating positive adjustment to import competition.
Rule 20.2. The Commission shall hold a public hearing to
evaluate the effectiveness of the action at which all interested parties shall be afforded
opportunity to present evidence or testimony.
CHAPTER III - SPECIAL SAFEGUARD MEASURES FOR
AGRICULTURAL PRODUCTS
Section 21. Authority to Impose the
Special Safeguard Measure. - The Secretary of Agriculture shall
issue a department order requesting the Commissioner of Customs, through the
Secretary of Finance, to impose an additional special safeguard duty on an
agricultural product, consistent with Philippine international treaty obligations,
if:
(a) Its cumulative import volume in a given year
exceeds its trigger volume, subject to the conditions stated in this Act, in
Section 23 below; or but not concurrently; and
(b) Its actual c. if import price is less than its
trigger price subject to the conditions stated in this Act, in Section 24 below.
Rule 21. Authority to Impose the Special Safeguard Measure
Rule 21.1. The Secretary of Agriculture shall issue a Department Order
requesting the Commissioner of Customs through the Secretary of Finance to impose an
additional special safeguard duty, on an agricultural product, (listed in Annex A)
consistent with the Philippine International Treaty Obligations, if:
Rule 21.1.a. Its cumulative import volume in a given year exceeds its
trigger volume, subject to the conditions stated in these IRRS, in Rule 23 below; or but
not concurrently;
Rule 21.1.b. Its actual C.I.F. import price is less than its trigger
price subject to the conditions stated in these IRRS, in Rule 24 below.
Section 22. Initiation of Actions Involving Special Safeguard
Measure . - Any person, whether natural or juridical, may request the Secretary
to verify if a particular product can be imposed a special safeguard duly subject to the
conditions set in Section 21 of this act. The request shall include data which would show
that the volume of imports of a particular product has exceeded its trigger volume or that
the c. i.f. import price of a particular product has gone below its trigger price. The
Secretary shall come up with a finding within five (5) working days from the receipt of a
request.
The Secretary may, motu proprio, initiate the imposition of a
special safeguard measure following the satisfaction of the conditions for imposing the
measure set in this chapter.
Rule 22. Initiation of Action Involving Special Safeguard Measure
Rule 22.1. Any person, whether natural or juridical, may request the
Secretary to verify if a particular product can be imposed a special safeguard duty
subject to the conditions set in Rule 21 of these IRRS.
Rule 22.2. The request shall include data which would show that the
volume of imports of a particular product has exceeded its trigger volume or that the
c.i.f import price of a particular product has gone below its trigger price.
Rule 22.3. The Secretary shall come up with a finding within five (5)
working days from the receipt of a request.
Rule 22.4. The Secretary, may motu proprio, initiate the
imposition of a special safeguard measure following the satisfaction of the conditions for
imposing the measure set in this Chapter.
Section 23. Determination of Special Duty Based on the
Volume Test. -The special safeguard duly allowed to be imposed on the basis of
the volume test pursuant to Section 21 (a) of this Act shall be determined as
follows:
(a) The trigger volume referred to in Section 21 (a) of this Act is the
amount obtained, after adding the change in the annual domestic consumption of the
agricultural product under consideration ,for the two (2) preceding years for which
data are available, to:
(i) One hundred twenty-five percent (125%) of the
average annual volume of imports of the agricultural product under consideration in
the three (3) immediately preceding years for which data are available, hereinafter
referred to as the average import volume, if the market access opportunity is at
most ten percent (10%); or
(ii) One hundred ten percent (110%) of the average annual
import volume, if the market access opportunity exceeds ten percent (10%) but is
not more than thirty percent (30%); or
(iii) One hundred five percent (105%) of the average
annual import volume, if the market access opportunity exceeds thirty percent
(30%):
Provided, That if the change in the volume of domestic consumption mentioned
above is not taken into account in computing the trigger volume, the trigger volume
shall be equal to one hundred twenty-five percent (125%) of the average import
volume for the immediate three (3) preceding years for which data are available,
unless a clear justification is given that a different level is necessary to
prevent or remedy serious injury: Provided, further, That the trigger volume shall
at least be one hundred five percent (105%) of the average imports of the
agricultural product under consideration.
(b) The special safeguard duty to be imposed subject to the conditions
stated under the volume test shall be appropriately set to a level not exceeding
one-third of the applicable out-quota customs duty on the agricultural product
under consideration in the year when it is imposed. Provided, That this duty shall
only be maintained until the end of the year in which it is imposed. Provided,
further, That this duty may be reduced or terminated in special cases such as when
a storage of a particular agricultural product exists, as determined by the Secretary.
(c) In transitu, volumes of imports of the agricultural product under
consideration at the time the special safeguard duty is imposed shall be exempted
from the additional duty. However, such volumes shall be counted in the computation
of the cumulative volume of imports of the said agricultural product for the .following
year.
Rule 23. Determination of Special Duty based on the Volume Test
Rule 23.1. The special safeguard duty allowed to be imposed on the basis
of the volume test pursuant to Rule 21.1.a of these IRRs shall be determined as follows:
Rule 23.1.a. The trigger volume referred to in Rule 21.1.a of these IRRs
is the amount obtained, after adding the change in the annual domestic consumption of the
agricultural product under consideration, for the two (2) preceding years for which data
are available, to:
i. One hundred twenty-five percent (125%) of the average annual volume of
imports of the agricultural product under consideration in the three (3) immediately
preceding years for which data are available, hereinafter referred to as the average
import volume, if the market access opportunity is at most ten percent (10%); or
ii. One hundred ten percent (110%) of the average annual import volume, if the
market access opportunity exceeds ten percent (10%) but is not more than thirty percent
(30%); or
iii. One hundred five percent (105%) of the average annual
import volume, if the market access opportunity exceeds thirty percent (30%)
Provided, that if the change in the volume of domestic
consumption mentioned above is not taken into account in computing the trigger volume, the
trigger volume shall be equal to one hundred twenty five percent (125%) of the average
annual import volume for the immediate three (3) preceding years for which data are
available, unless clear justification is given that a different level is necessary to
prevent or remedy serious injury. Provided, further, that the trigger volume shall at
least be one hundred five percent (105%) of the average imports of the agricultural
product under consideration.
Rule 23.1.b. The special safeguard duty to be imposed
subject to the conditions stated under the volume test shall be appropriately set to a
level not exceeding one-third of the applicable out-quota customs duty on the agricultural
product under consideration in the year when it is imposed: Provided, that such duty shall
only be maintained until the end of the year in which it is imposed: Provided, further,
that this duty may be reduced or terminated in special cases such as when a shortage of a
particular agricultural product exists, as determined by the Secretary.
Rule 23.1.c. In transitu volumes of imports of the
agricultural product under consideration at the time the special safeguard duty is imposed
shall be exempted from the additional duty. However, such volumes shall be counted in the
computation of the cumulative volume of imports of the said agricultural product for the
following year.
Section 24. Determination of Special Safeguard Duty Based on the Price
Test - The additional duly allowed to be imposed on the basis of the price test
pursuant to Section 21 (b) of this Act shall be determined as follows:
(a) The trigger price referred to in Section 21 (b) of this Act is the
average actual c.i.f. import price or relevant reference price of the agricultural
product under consideration from 1986 to 1988, unless clear justification is
given that a different reference price is necessary to prevent or remedy serious
injury. The Secretary shall publish the list of trigger prices corresponding to
each of the agricultural products covered by this Act, after the conduct of public
hearings on the subject; and
(b) The special safeguard duty to be imposed
subject to the conditions stated under Section 21 (b) of this Act shall be computed
as follows:
(i) Zero, if the price difference is at most ten percent (10%) of the trigger
price; or
(ii) Thirty percent (30%) of the amount 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
(iii) Fifty percent (50%) of the amount by which the
price difference exceeds forty percent (40%) of the trigger price, plus the
additional duty imposed under Section 24 (b) (ii), if the said difference exceeds
forty percent (40%) but is at most sixty percent (60%) of the trigger price; or
(iv) Seventy percent (70%) of the amount by which the
price difference exceeds sixty percent (60%) of the trigger price, plus the
additional duties imposed under Section 24 (b) (ii) and (b) (iii), in the said difference
exceeds sixty percent (60%) and is at most seventy-five percent (75%) of the
trigger price; or
(v) Ninety percent (90%) of the amount by which the price
difference exceeds seventy-five percent (75%) of the trigger price; plus the additional
duties imposed under Section 24 (b)(ii), (b)(iii), and (b)(iv), if the said difference
exceeds seventy-five percent (75%) of the trigger price.
As far as practicable, a special safeguard
measure determined under the provisions of this Section shall not be resorted to
when the volume of the imported agricultural product under consideration is
declining.
Rule 24. Determination of Special Safeguard Duty Based on the Price Test
Rule 24.1. The additional duty allowed to be imposed on the basis
of the price test pursuant to Rule 21.lb of these IRRs shall be determined as follows:
Rule 24.1.a. The trigger price referred to in Rule 21.
1.b of these IRRs is the average actual c.i.f import price or relevant reference price of
the agricultural product under consideration from 1986 to 1988, unless clear justification
is given that a different reference price is necessary to prevent or remedy serious
injury. The Secretary shall publish the list of trigger prices corresponding to each of
the agricultural products covered by these IRRS, after the conduct of public
hearings on the subject; and
Rule 24.1.b. The special safeguard duty to be imposed
subject to the conditions stated under Rule 21.1.b of these IRRS shall be computed as
follows:
i. Zero, if the price difference is at most ten percent (10%) of the trigger
price; or
ii. Thirty percent (30%) of the amount 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
iii. Fifty percent (50%) of the amount by which the price
difference exceeds forty percent (40%) of the trigger price, plus the additional duty
imposed under Rule 24.1.(b) ii, if the said difference exceeds forty percent (40%) but is
at most sixty percent (60%) of the trigger price; or
iv. Seventy percent (70%) of the amount by which the price
difference exceeds sixty percent (60%) of the trigger price, plus the additional duties
imposed under Rule 24.1.(b) ii and (b) iii, if the said difference exceeds sixty percent
(60%) and is at most seventy-five (75%) of the trigger price; or
v. Ninety percent (90%) of the amount by which the price
difference exceeds seventy-five percent (75%) of the trigger price; plus the additional
duties imposed under Rule 24.1.(b) ii, (b) iii, and (b) iv if the said difference exceeds
seventy-five percent (75%) of the trigger price.
As far as practicable, a special
safeguard measure determined under the provisions of this Rule shall not be resorted to
when the volume of the imported agricultural product under consideration is declining.
Section 25. Agricultural Products Subject to
Minimum Access Volume Commitments. - The special safeguard duty shall not apply to the
volumes of the imported agricultural product under consideration that are brought into the
country under the minimum access volume mechanism. Provided, however, that these volumes
shall be included in computing the cumulative volume of imports of the said agricultural
product pursuant to Section 21 (a) of this Act.
Rule 25. Agricultural Products Subject to Minimum Access Volume
Commitments
Rule 25.1 The special safeguard duty shall not apply to
the volumes of the imported agricultural product under consideration that are brought into
the country under the minimum access volume mechanism: Provided, however, that these
volumes shall be included to computing the cumulative volume of imports of the said
agricultural product pursuant to Rule 21.1a of these IRRs.
Section 26. Perishable and Seasonal Agricultural
Products. - Shorter time periods and different reference prices may be used in
determining the applicable special measure taking into account the special characteristic
of perishable and seasonal agricultural imports.
Rule 26. Perishable and Seasonal Agricultural Products
Rule 26.1 Shorter time periods and different reference
prices may be used in determining the applicable special safeguard measure taking into
account the special characteristics of perishable and seasonal agricultural imports.
Section 27. Notice
of Special Safeguard Measure. The Secretary shall make the administration of the
safeguard measure transparent by giving notice in writing to the WTO Committee on
Agriculture, in advance to the extent practicable, but in any event within ten 10 days
from the implementation of such measure: Provided, however, That for perishable and
seasonal agricultural products. Notification shall be made from the first action in any
period.
The notice shall include relevant data or
as may be deemed necessary, information and methods used in cases where changes in
consumption volumes must be allocated to individual tariff lines subject to action under
Chapter III of this Act.
Where a special safeguard measure action
is taken under the provisions of this Act, the Secretary shall consult with interested WTO
members and provide all relevant information on the conditions of the application of such
action.
Rule 27. Notice of Special Safeguard Measure
Rule 27.1 The Secretary shall make the administration of
the safeguard measure transparent by giving notice in writing to the WTO Committee on
Agriculture, in advance to the extent practicable, but in any event within ten (1) days
from the implementation of such measure: Provided, however, that for perishable and
seasonal agricultural products, notification shall be made from the first action in any
period.
Rule 27.2 The notice shall include relevant data or as may
be deemed necessary, information and methods used in cases where changes in consumption
volumes must be allocated to individual tariff lines subject to action under Chapter III
of these IRRs.
Rule 27.3 Where a special safeguard measure action is
taken under the provisions of these IRRs, the Secretary shall consult with interested WTO
members and provide all relevant information on the conditions of the application of such
action.
Section 28. Duration of Special Safeguard Measures.
– The special safeguard measures for agricultural products shall lapse with the
duration of the reform process in agriculture as determined in the WTO. Thereafter,
recourse to safeguard measures shall be subject to the provision on general safeguard
measures as provided in Chapter II of this Act.
Rule 28. Duration of Special Safeguard Measures
Rule 28.1. The special safeguard measures for
agricultural product shall lapse with the duration of the reform process in agriculture as
determined in the WTO. Thereafter, recourse to safeguard measures shall be subject to the
provisions of general safeguard measures as provide in Chapter II of these IRRs.
CHAPTER IV – SPECIAL PROVISIONS
Section 29. Judicial Review. – Any interested
party who is adversely affected by the ruling of the Secretary in connection with the
imposition of a safeguard measure may file with the Court of Tax Appeals, a petition for
review of such ruling within thirty (30) days from receipt thereof: Provided, however,
That the filing of such petition for review shall not in any way stop, suspend or
otherwise toll the imposition or collection of the appropriate tariff duties or the
adoption of other appropriate safeguard measures, as the case may be.
The petition for review shall comply with the
same requirements and shall follow the same rules of procedure and shall be subject to the
some disposition as in appeals in connection with adverse ruling on tax matters to the
Court of Appeals.
Rule 29. Judicial Review
Rule 29.1. Any interested party who is adversely affected
by the ruling of the Secretary in connection with the imposition of a safeguard
measure may file with the Court of Tax Appeals, a petition for review of such ruling
within thirty (30) calendar days from receipt thereof. Provided, however, That the filing
of such petition for review shall riot in any way stop, suspend or otherwise toll the
imposition or- collection of the appropriate tariff duties or the adoption of other
appropriate safeguard measures, as the case may be.
Rule 29.2. The petition for review shall comply
with the same requirements arid shall follow the same rules of procedure and shall be
subject to the same disposition as in appeals in connection with adverse rulings on tax
matters to the Court of Appeals.
Section 30. Penalty Clause. – Any government official or employee
who shall fail to initiate, investigate, and implement the necessary action as provided in
this Act and the rules and regulations to be issued pursuant hereto, shall be guilty of
gross neglect of duty and shall suffer the penalty of dismissal from public service and
absolute disqualification from holding public office.
Rule 30. Disciplinary Action
Rule 30.1. Complaints against all erring government
officials under this Rule shall be filed with the Office of the Ombudsman.
Rule 30.2. Any government official or employee who shall
fail to initiate investigate and implement necessary actions as provided in the Safeguard
Measures Act arid these IRRs shall be guilty of gross neglect of duty and shall suffer the
penalty of dismissal from public service arid absolute disqualification from holding
public office.
Section 31. Prohibition of Concurrent Recourse to Safeguard
Measures. – There shall be no recourse to the use of the general safeguard
measure under Chapter II of this Act concurrently with the special safeguard measure as
provided for under Chapter III of this Act and vice-versa.
Rule 31.1 There shall be no recourse to the use of
general safeguard measure under Chapter II of these IRRs concurrently with the special
safeguard measure as provided for under Chapter III of these IRRs and vice-versa.
Section 32. Issuance of Implementing Rules and Regulations. -
Within sixty (60) days after the effectivity of this Act, the Department of
Agriculture and the Department of Trade and Industry in consultation with the Department
of Finance, the Bureau of Customs, the National Economic and Development Authority, and
the Tariff Commission, after consultations with domestic industries and with the approval
of the Congressional Oversight Committee which is hereby created under this Act, shall
promulgate the necessary rules and regulations to implement this Act.
Section 33. Oversight. – There shall be a
Congressional Oversight Committee composed of the Chairman of the Committee on Trade and
Industry, the Committee on Ways and means, and the Committee on Ways and Means, and the
Committee on Agriculture of both the Senate and the House of Representatives to oversee
the implementation of this Act.
Section 34. Administrative System Support.
– Upon the effectivity of this Act, any sum as may be necessary for the Department of
Agriculture, the Department of Trade and Industry, and the Tariff Commission to undertake
their functions efficiently and effectively shall be included in the General
Appropriations Act.
The aforementioned government agencies are
hereby authorized to collect such fees, charges, and safeguard duties that are deemed
necessary. Fifty percent (50%) of the revenue collected from such fees, charges, and
safeguard duties shall be set aside in a Remedies Fund which shall be earmarked for the
use of these agencies in the implementation of remedies, including the safeguard measures.
The remaining fifty percent (50%) shall be deposited under a special account to be created
in the National Treasury and shall be earmarked for competitiveness enhancement measures
for the industries affected by the increased imports. The disposition thereof shall be
determined through the General Appropriations Act.
Rule 34. Administrative System Support
Rule 34.1 The Department of Trade and Industry (DTI), the
Department of Agriculture (DA), and the Commission, shall create or designate a special
unit within their agencies that will undertake the functions relative of the imposition of
safeguard measures.
Rule 34.2 Upon the effectivity of RA 8800, any sum as may
be necessary for the DTI, the DA, and the Commission to undertake their functions
efficiently and effectively shall be included in the General Appropriations Act.
Rule 34.3 The aforementioned government agencies are
hereby authorized to collect fees, charges and safeguard duties that are deemed necessary.
Fifty percent (50%) of the revenue collected by the DTI, the DA, the Commission, and the
Bureau of Customs from such fees, charges, and safeguard duties shall be set aside in a
Remedies Fund which shall be earmarked for the use of these agencies in the implementation
of remedies, including the safeguard measures. The remaining fifty percent (50%) shall be
deposited under a special account to be created in the National Treasury and shall be
earmarked for competitiveness enhancement measures for the industries affected by the
increased imports. The disposition thereof shall be determined through the General
Appropriations Act.
Rule 34.4. As provided under Section 34 of RA 8800 and
Rule 34.3 of these IRRs, the Secretary and the Commission shall set a reasonable amount to
be collected as filing fee for the conduct of a safeguard measure investigation.
Rule 34.5. The Department of Finance, the Department of
Budget and Management, the DTI, the DA, the Bureau of Customs, the National Treasury, and
the Commission shall jointly promulgate the procedures for the creation management and
utilization of the Remedies Fund.
Section 35. Assistance to Farmers and Fisherfolk.
– To safeguard and enhance the interest of farmers and fisherfolk, nothing in this
Act shall in any manner affect the provisions of Republic Act No. 8435, otherwise known as
the Agriculture and Fisheries Modernization Act.
Rule 35. Assistance to Farmers and Fisherfolk
Rule 35.1. To safeguard and enhance the interest of
farmers and fisherfolk, nothing in these IRRs shall in any manner affect the provisions of
Republic Act No. 8435, otherwise known as the Agriculture and Fisheries Modernization Act.
Section 36. Conditions for Application of Safeguard
Measures. – In the application of any safeguard measure under this Act, the
following conditions must be observed:
(1) All actions must be transparent and shall not allow any
anti-competitive, monopolistic or manipulative business devise; and
(2) Pursuant to the non-impairment clause of the Constitution,
nothing in this Act shall impair the obligation of existing supply contracts.
Rule 36. Conditions for Application of Safeguard
Measures
Rule 36.1 In applying any safeguard measure under thse
IRRs, the following conditions must be observed:
Rule 36.1.a. All actions must be transparent and shall
not allow any anti-competitive, monopolistic or manipulative business devise; and
Rule 36.1.b. Pursuant to the non-impairment clause of the
Constitution, nothing in these IRRs shall impair the obligation of existing supply
contracts entered into prior to August 9, 2000 or the effectivity of RA 8800.
Section 37. Separability Clause. – If any
provision of this Act is held invalid, the other provisions of this Act not affected shall
remain in force and effect.
Rule 37. Separability Clause
Rule 37.1. If any of the provisions of these IRRs is
declared invalid by a competent court, the remainder of these IRRs or any provision not
affected by such declaration of invalidity shall remain in force and effect.
Section 38. Repealing Clause. – All laws,
decrees, rules and regulations, executive or administrative orders and such other
presidential issuances as are inconsistent with any of the provisions of this Act are
hereby repealed, amended or otherwise modified accordingly.
Rule 38. Repealing Clause
Rule 38.1 All rules and regulations, ordinances, and
executive or administrative orders related to the imposition of safeguard measures which
are inconsistent with any of the provisions of these IRRs are hereby repealed, amended or
otherwise modified accordingly.
Section 39. Effectivity Clause. – This Act shall take effect
fifteen (15) days following its complete publication in two (2) newspapers of general
circulation or in the Official Gazette, whichever comes earlier.
Rule 39.1 This Order shall take effect seven (7) days from publication in
one (1) newspaper of general circulation. Rule 39.1 This Order shall take effect seven (7) days from publication in
one (1) newspaper of general circulation. Rule 39.1 This Order shall take effect seven (7) days from publication in
one (1) newspaper of general circulation.
(Sgd.) MANUEL A. ROXAS II
(Sgd.) EDGARDO J. ANGARA
Secretary, Department of Trade and Industry
Secretary, Department of Agriculture
(Signed) JOSE TRINIDAD PARDO
Secretary, Department of Finance
(Signed) EMMANUEL T. VELASCO
(Signed) RENATO A. AMPIL
Chairman, Tariff
Commission
Commissioner, Bureau of Customs
Annex A
List of
Agriculture Products which may be Imposed a Special Safeguard Duty
HS
Code |
DESCRIPTION |
0101.11 00 |
Pure-bred breeding horses |
0101.19 00 |
Other live horses |
0101.20 00 |
Asses, mules and hinnies |
0102.10 00 |
Pure-bred bleeding bovine animals |
0102.90 00 |
Feeder Cattle not weighing more than 300
kg |
0102.90 00 |
Other live bovine animals |
0103.91 20 |
Live swine weighing less than 50 kg |
0103.92 20 |
Live swine weighing 50 kg or more |
0104.20.92 |
Other live goats |
0105.11 10 |
Chicks for breeding weighing not more than
185 g |
0105.11 90 |
Fowls of the species Gallus domesticus
weighing not more than 185 grams other than those of subheading No. 0105.11 10 |
0105.12 10 |
Turkeys for breeding weighing not more
than 185 g |
0105.12 92 |
Other turkeys weighing not more than 185 g |
0105.19 10 |
Ducks, geese and turkeys for breeding
weighing more than 185 g |
0105.19 92 |
Other live poultry, not weighing more than
185 g |
0105.92 10 |
Chicken for breeding weighing more than
185 g but not exceeding 2000 g |
0105.92 20 |
Game cock or any male chicken for cock
fighting weighing more than 185 g but not exceeding 2000 g |
0105.92 92 |
0ther fowls of the species gallus
domesticus weighing more than 185 g but not exceeding 2000 g |
0105.93 10 |
Chicken for breeding weighing more than
2000 g |
0105.93 20 |
Game cock or any male chicken for cock
fighting weighing more than 2000 g |
0105.93 92 |
Other fowls of the species gallus
domesticus weighing more than 2000 g |
0105.99 12 |
Ducks, geese and turkeys weighing more
than 185 g |
0105.99 92 |
Other live poultry weighing more than 185
g |
0106.00 99 |
Other live animals, n.e.s. |
0201.10 00 |
Carcasses and half-carcasses, of bovine
animals, fresh or chilled |
0201.20 00 |
Other cuts with bone in, of bovine
animals, fresh or chilled |
0201.30 00 |
Meat of bovine animals, boneless,
manufacturing grade cuts fresh or chilled |
0201.30 00 |
Meat of bovine animals, boneless, other
than manufacturing grade cuts fresh or chilled |
0202.10 00 |
Carcasses and half-carcasses, of bovine
animals, frozen |
0202.20 00 |
Other cuts with bone in of bovine animals,
frozen |
0202.30 00 |
Meat of bovine animals, boneless, other
than manufacturing grade cuts, frozen |
0203.11 20 |
Carcasses and half-carcasses, of swine,
fresh or chilled |
0203.12 20 |
Hams, shoulders and cuts thereof with bone
in, of swine, fresh or chilled |
0203.19 12 |
Pork bellies, fresh, or chilled |
0203.19 22 |
Fore-ends and cuts thereof fresh or
chilled |
0203.19 92 |
Other meat of swine other than pork
bellies and fore-ends and cuts thereof, fresh or chilled |
0203.21 20 |
Carcasses and half-carcasses of swine,
frozen |
0203 22 20 |
Hams, shoulders an, cuts thereof with bone
in, of swine, frozen |
0203.29 12 |
Pork bellies, frozen |
0203.29 22 |
Fore-ends and |
0203.29 92 |
Other meat of swine other than pork
bellies and fore-ends and cuts thereof, frozen |
0204.10 00 |
Carcasses and half-carcasses, of lamb,
fresh or chilled |
0204.21 00 |
Carcasses and half-carcasses, of sheep,
fresh or chilled |
0204.22 00 |
Other cuts with bone in of sheep, fresh or
chilled |
0204.23 00 |
Meat of sheep, boneless, fresh or chilled |
0204.30 00 |
Carcasses and half-carcasses of lamb,
frozen |
0204.41 00 |
Carcasses and half-carcasses of sheep,
frozen |
0204.42 00 |
Other cuts with bone in of sheep, frozen |
0204.43 00 |
Meat of sheep, boneless, frozen |
0204.5020 |
Meat of goats, fresh, chilled or frozen |
0205.00 00 |
Meat of horses, asses and mules hinnies,
fresh, chilled or frozen |
0206.10 00 |
Edible offal of bovine animals, fresh or
chilled |
0206.21 00 |
Tongues of bovine animals, frozen |
0206.22 00 |
Livers of bovine animals, frozen |
0206.29 00 |
Other edible offal of bovine animals,
frozen |
0206.30 00 |
Edible of offal swine, fresh or chilled |
0206.41 00 |
Livers of swine, frozen |
0206.49 00 |
Other edible offal of swine. frozen |
0206.80 00 |
Edible offal of sheep, goats, horses,
asses, mules or hinnies, fresh or chilled |
0206.90 00 |
Edible offal of sheep, goats. horses,
asses, mules or hinnies, frozen |
0207.11 20 |
Chickens and ducks not cut in pieces.
fresh or chilled |
0207.12 20 |
Fowls of the species Gallus domesticus,
not cut in pieces, frozen |
0207.13 20 |
Cuts and offal of fowls of the species Gallus
domesticus, fresh or chilled |
0207.14 12 |
Livers of the species Gallus
domesticus, frozen |
0207.14 92 |
Other cuts and offal of fowls of the
species Gallus domesticus, frozen |
0207.24 20 |
Turkeys not cut in pieces, fresh or
chilled |
0207.26 20 |
Cuts and offal (including livers) of
turkey, fresh or chilled |
0207.27 12 |
Livers of turkeys, frozen |
0207.32 12 |
Ducks not cut in pieces, fresh or chilled |
0207.32 22 |
Geese or guinea fowls, not cut in pieces,
fresh or chilled |
0207.33 20 |
Ducks, geese and guinea fowls not cut in
pieces, frozen |
0207.34 20 |
Fatty livers of geese or ducks, fresh or
chilled |
0207.35 20 |
Cuts and offal of ducks, geese or guinea
fowls, fresh or chilled |
0207.36 12 |
Fatty livers of geese or guinea fowls,
frozen |
0207.36 92 |
Cuts and offal, other than livers, of
ducks, geese or guinea fowls, frozen |
0208.10 00 |
Meat and edible meat offal of rabbits or
hares, fresh, chilled or frozen |
0208.20 00 |
Frog's legs fresh, chilled or frozen |
0208.90 00 |
Other mart and edible meat offal, fresh,
chilled or frozen |
0210.11 20 |
Hams, shoulders and cuts thereof, with
bone in, of swine, salted, in brine, dried, or smoked |
0210.12 20 |
Bellies (streaky) and cuts thereof of
swine, salted, in brine, dried or smoked |
0210.19 20 |
Other meat and edible meat offal of swine,
salted, in brine, dried or smoked |
0210.20 00 |
Meat of bovine animals, salted, in brine,
dried or smoked |
0210.90 10 |
Freeze dried chicken dice |
0210.90 92 |
Meat and edible meat offal of other
animals including edible flours and meals of meat or meat offal, salted, in brine, dried
or smoked |
| 0701.10 00 |
Seed potatoes |
0701.90 20 |
Potatoes, fresh or chilled other than seed
potatoes |
0703.10 20 |
Onions and shallots, fresh or chilled |
0703.20 20 |
Garlic, fresh or chilled |
0704.90 12 |
Cabbages |
0704.90 90 |
Kohirabi, kale and similar edible
brassicas, fresh or chilled |
0714.10 00 |
Manioc (cassava) fresh or dried, whether
or not sliced or in the form of pellets |
0714.20 00 |
Sweet potatoes, fresh or dried, whether or
not sliced or in the form of pellets |
0901.11 20 |
Coffee, not roasted, not decaffeinated |
0901.12 20 |
Coffee, not roasted, decaffeinated |
0901.21 20 |
Coffee, roasted, not decaffeinated |
0901.22 20 |
Coffee, roasted, decaffeinated |
0901.90 20 |
Coffee husks and skins: coffee substitutes
containing coffee in any preparation |
1001.90 10 |
Wheat used as feed |
1002.00 00 |
Rye |
1003.00 00 |
Barley |
1004.00 00 |
Oats |
1005.10 00 |
Maize (corn) seed |
1005.90 10 |
Popcorn |
1005.90 92 |
Maize (corn), other than seed |
1007.00 00 |
Grain sorghum |
1008.90 00 |
Other cereals |
1103.11 10 |
Durum or hard wheat semolina |
1103.11 90 |
Groats and meal of wheat other than durum
or hard semolina |
1103.13 00 |
Groats and meal of maize (corn) |
1103.21 00 |
Pellets of wheat |
1104.22 00 |
Worked oats |
1104.23 00 |
Worked maize (corn) |
1109.00 00 |
What glutten, whether or not dried |
1601.10 00 |
Sausages of all kinds, whether or not in
airtight containers |
1601.10 00 |
Products similar to sausages, of meat,
meat offal or blood; food preparations based on these products |
1602.10 20 |
Homogenised preparations of meat and
edible meat offal |
1602.20 20 |
Liver of any animal, prepared or preserved |
1602.31 12 |
Turkey meat or offal, prepared or
preserved, in airtight containers |
1602.31 92 |
Turkey meat or offal, prepared or
preserved, other than in airtight containers |
1602.32 12 |
Meat or offal of fowls of the species Gallus
domesticus, prepared or preserved in airtight containers |
1602.32 92 |
Meat or offal of fowls of the species Gallus
domestcus, prepared or preserved other than in airtight containers |
1602.39 12 |
Poultry meat or offal, other than turkey
and of fowls of the species Gallus domesticus, prepared or preserved, in airtight
containers |
1602.39 92 |
Poultry meat or offal, other than turkey
and of fowls of the species Gallus domesticus, prepared or preserved, other than
in airtight container |
1602.41 12 |
Hams and cuts thereof of swine, prepared
or preserved, in airtight containers |
1602.41 92 |
Hams and cuts thereof of swine, prepared
or preserved, other than in |
1602.42 20 |
Shoulders and cuts thereof, of swine,
prepared or preserved |
1602.49 20 |
Other prepared or preserved meat and offal
of swine, including mixtures |
1602.50 00 |
Meat and meat offal of bovine animals,
prepared or pressured, in airtight containers |
1602.50 00 |
Meat and meat offal of bovine animals,
prepared or preserved, other than in airtight containers |
1602.90 12 |
Other prepared or preserved meat and offal
including preparations of blood of any animal, in airtight containers, n.e.s. |
1602.90 92 |
Other prepared or preserved meat and offal
including preparations of blood of any animal, other than in airtight containers, n.e.s. |
1701.11 20 |
Cane sugar, raw, but containing added
flavoring or coloring material |
1701.12 20 |
Beet sugar, raw, not containing added
flavoring or coloring material |
2101.11 20 |
Extracts, essences and concentrates, of
coffee and preparations with the basis of |
2101.12 20 |
These extracts, essences or concentrates
or with a basis of coffee |
2302.10 00 |
Bran, sharps and other residues, whether
or not in the form of pellets, derived from the sifting, milling or other working of maize
(corn) |
2303.10 00 |
Residues of starch manufacture and similar
residues |
Based on the Harmonized Commodity Description and Coding System, Tariff and
Customs Code of the Philippines, Volume 1, June 2000
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