Authority to Impose the Special Safeguard Measure.
SEC. 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.i.f. import price is less than its trigger price subject to the conditions stated in this Act, in Section 24 below.
Initiation of Action Involving Special Safeguard Measure.
SEC. 22. Initiation of Action 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 duty 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.
SEC. 23. Determination of Special Duty Based on the Volume Test. -The special safeguard duty 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:
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
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
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 shortage 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.
Determination of Special Safeguard Duty Based on the Price Test.
SEC. 24. Determination of Special Safeguard Duty Based on the Price Test. - The additional duty 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:
Zero, if the price difference is at most ten percent (10%) of the trigger price; or
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
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
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), if the said difference exceeds sixty percent (60%) and is at most seventy-five percent (75%) of the trigger price; or
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.
Agricultural Products Subject to Minimum Access Volume Commitments.
SEC. 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.
Perishable and Seasonal Agricultural Products.
SEC. 26. Perishable and Seasonal Agricultural Products. - 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.
Notice of Special Safeguard Measure.
SEC. 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.
Duration of Special Safeguard Measures.
SEC. 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 provisions on general safeguard measures as provided in Chapter II of this Act.
CHAPTER IVSPECIAL PROVISIONS
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
