RA 8800 An Act Protecting Local Industries by Providing Safe in Measure to be Undertaken in Response to Increased Imports and Providing Penalties

s for Violation Thereof FREQUENTLY ASKED QUESTIONS 1. What products are covered by the Safeguard Measures Act? The Safeguard Measures Act applies to products being imported into the country irrespective of source. (Sec. 3) 2. When may a general safeguard measure be applied? 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. (Sec. 5) 3. What conditions must be met for the 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. (Sec. 36) 4. Who has the authority to impose special safeguard measures for agricultural products? The Secretary of Agriculture 5. What are the forms of appropriate definitive measures? Upon its positive determination, the Commission shall recommend to the Secretary an appropriate definitive measure, in the form of: (a) (b) (c) (d) (e) An increase in, or imposition of, any duty on the imported product; A decrease in or the imposition of a tariff-rate quota (MAV) on the product; A modification or imposition of any quantitative restriction on the importation of the product into the Philippines; One or more appropriate adjustment measures, including the provision of trade adjustment assistance; 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. (Sec. 13) 6. What products are not covered by the general safeguard measure? 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, the developing countries with less than three percent (3%) share collectively account for not more than nine percent (9%) of the total imports. (Sec. 13) 7. What products are not covered by special safeguard duty? 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. (Sec. 25) 8. What are the forms of appropriate definitive measures? Upon its positive determination, the Commission shall recommend to the Secretary an appropriate definitive measure, in the form of: (a) (b) (c) (d) (e) An increase in, or imposition of, any duty on the imported product; A decrease in or the imposition of a tariff-rate quota (MAV) on the product; A modification or imposition of any quantitative restriction on the importation of the product into the Philippines; One or more appropriate adjustment measures, including the provision of trade adjustment assistance; 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. (Sec. 13) 9. What is the scope of the general safeguard measure? The general safeguard measure shall be limited to the extent of redressing or pre venting 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 restriction are used, such measure 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. (Sec. 13)

10. When shall the notice of general safeguard measure be given to the World Trade Organization (WTO)? 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 10 days from the implementation of such measure. However, for perishable and seasonal agricultural products, notification shall be made from the first action in any period. (Sec. 27)