State Council, PRC Safeguard Measures Regulations

Promulgated: November 26 2001
Effective: January 1 2002

Main contents: According to the Regulations, investigations shall be initiated under the Regulations when increased imports of a product are causing or threaten to cause serious injury to domestic producers of like or directly competitive products (Article 2). "increased imports" means absolute or relative increase of imports in relation to domestic production (Article 7). The Ministry of Foreign Trade and Economic Cooperation (MOFTEC) may initiate an injury investigation upon the request of the concerned parties or when MOFTEC has sufficient evidence to believe that domestic industry is injured by increased imports of a product (Article 4). Investigation and determination of increased imports shall be handled by MOFTEC, whereas investigation and determination of injury shall be handled by the State Economic and Trade Commission (Article 6). The results of investigation on increased imports and injury as well as the bases of the results shall be announced by MOFTEC (Article 14). If there is prima facie evidence that increased imports of a product have occurred and that delay of action would cause injury that would be difficult to repair, a preliminary ruling may be made and provisional safeguard measures in the form of increased tariffs may be implemented for a period of not longer than 200 days (Articles 17 and 19). When a final ruling confirms such increased imports and injury, applicable safeguard measures may also include quantitative restriction (Article 20). Safeguard measures taken upon a final ruling shall be implemented for a period of not longer than four years but such period may be extended up to eight years subject to certain conditions (Article 27). Prompt notification shall be given to the World Trade Organization Committee on Safeguards of the initiation of any investigation, the results of the investigation and the taking of provisional and non-provisional safeguard measures (Articles 5, 14, 18 and 21). The Regulations also state that if any country imposes discriminatory safeguard measures against PRC exports, the PRC may respond with corresponding measures (Article 32).
Related legislation: PRC, Foreign Trade Law (Revised), Apr 6 2004, CLP 2004 No.4 p34