 
  WORLD TRADE  
ORGANIZATION  G/SG/N/1/CHN/2/Suppl.3 
20 October 2004 
 (04-4446) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION OF LAWS, REGULATIONS AND 
ADMINISTRATIVE PROCEDURES RELATING 
TO SAFEGUARD MEASURES 
 
PEOPLE'S REPUBLIC OF CHINA 
 
Supplement
 
  
 The following communication, dated 18 October 2004, is being circulated at the request of 
the Delegation of the People's Republic of China. 
 
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  With reference to Article 12.6 of the Agre ement on Safeguards, the Government of China 
notifies the Committee on Safeguards of the departmental  rules related to the Agreement as following:  
Regulations of the People’s Republic of China on Safeguards.  G/SG/N/1/CHN/2/Suppl.3 
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 Regulations of the People’s Republic of China on Safeguards 
 
(Promulgated by Decree No. 330 of the State Council of the People’s Republic of China on 26 November 2001, and revised in accordance with  the Decision of the State Council on Amending 
the Regulations of the People’s Republic of Ch ina on Safeguards promulgated on 31 March 2004) 
 
Chapter I General Provisions 
 
 Article 1  These Regulations are formulated in accordance with the relevant provisions of the 
Foreign Trade Law of the People’s Republic of China for the purpose of promoting the sound 
development of foreign trade. 
  Article 2  When a product is imported in increased qua ntities and such increase has caused or 
threatens to cause serious injury (hereinafter collectively referre d to as injury, except otherwise 
indicated) to a domestic industry that produces like or  directly competitive products, an investigation 
shall be initiated and safeguard measures applie d in accordance with the provisions of these 
Regulations.  
Chapter II Investigation 
 
 Article 3  Any natural person, legal person or other organizati on related to a domestic 
industry (hereinafter collectively referred to as the applicant) may, in accordance with the provisions 
of these Regulations, make a written application to the Ministry of Commerce for applying safeguard 
measures.   The Ministry of Commerce shall promptly exam ine the application made by the applicant and 
decide whether or not to initiate an investigation. 
  Article 4  If the Ministry of Commerce decides to in itiate an investigation without having 
received any written application for applying safe guard measures, it shall proceed only if it has 
sufficient evidence of injury to a domestic indus try due to the increase in quantity of an import. 
 
 Article 5  The Ministry of Commerce shall publish the decision to initiate an investigation. 
  The Ministry of Commerce shall promptly notify the Committee on Safeguards of the World 
Trade Organization (hereinafter referred to as “t he Committee on Safeguards”) of the decision to 
initiate an investigation. 
 
Article 6 The Ministry of Commerce shall be responsible for the investigation and 
determination of the increase in quantity of an import and injury caused thereby.  The safeguards 
investigation of injury to a domestic industry i nvolving agricultural products  shall be conducted by 
the Ministry of Commerce jointly with the Ministry of Agriculture.  
 
 Article 7  The term  “increase in quantity of an import ” means an absolute increase in 
quantity of an import or relative increase compared with domestic production.   Article 8  The following relevant factors shall be examin ed in the determination of injury to a 
domestic industry caused by the increase in quantity of an import: 
 
(1) the rate and amount of the increase of the import in absolute and relative terms; 
(2) the share of the domestic market taken by the increased import;  G/SG/N/1/CHN/2/Suppl.3 
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 (3) the impact of the import on the domestic industry, including the impact on the production, the 
level of sales, market share, productivity, capacity utilization, profits and losses, and 
employment of the domestic industry; and 
(4) other factors that may cause or have caused injury to the domestic industry. 
 
 The determination of a threat of serious inju ry shall be based on facts and not merely on 
allegation, conjecture or remote possibility.   When determining the injury caused by the increase in quantity  of an import to a domestic 
industry, the injuries that are caused by factors other than the increase of imports shall not be 
attributed to the increase of imports. 
  Article 9  During the period of an investigation, the Ministry of Commerce shall promptly 
publish a detailed analysis of the case under i nvestigation and the relevant factors. 
 
 Article 10  The term “domestic industry”  means the domestic producers as a whole of the like 
or directly competitive products within the Peopl e’s Republic of China or those of them whose 
collective output of the like or directly competitiv e products constitutes a major proportion of the total 
domestic production of those products.    Article 11  The Ministry of Commerce shall, on the basis of objective facts and evidence, 
determine whether or not there exists a causal link between the increased imports of the product 
concerned and the injury to the domestic industry.   Article 12  The Ministry of Commerce shall provide  opportunities for importers, exporters 
and other interested parties to present their views and supporting arguments. 
 
 The investigation may be conducted by m eans of sending questionnaires, holding public 
hearings, or by other appropriate means.   Article 13  The Ministry of Commerce may treat the information collected during an 
investigation as confidential, if the information provider deems it necessary. 
 
 If the request for confidentiality is justifiabl e, the information provided by the information 
provider shall be treated as conf idential, and the information provi der shall be required to provide 
non-confidential summaries thereof.  
 No confidential information shall be discl osed without permission of the information 
provider.    Article 14  The explanations to the find ings of an investigation on  the increase in quantity of 
imports, injuries and the reasons therefore shall be published by the Ministry of Commerce.  
 The Ministry of Commerce shall promptly notify the Committee on Safeguards of the 
findings and the relevant information.   Article 15  The Ministry of Commerce may, on the basis of its findings, make a preliminary 
determination, or make a final de termination directly.  The determin ations shall be published by the 
Ministry of Commerce.   
 G/SG/N/1/CHN/2/Suppl.3 
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 Chapter III Safeguard Measures 
 
 Article 16  In critical circumstances  where there is clear evidence of increase in quantity of 
an import, and such increase would cause injury to a domestic industry which it would be difficult to 
remedy without the application of safeguard measur es, a preliminary determination may be made and 
provisional safeguard measures applied. 
  Provisional safeguard measures shall take the form of tariff increases.   Article 17  The proposal applying provisional safeguard  measures shall be put forward by the 
Ministry of Commerce, and, on the basis of such  a proposal, the State Council Tariff Commission 
shall make a decision which shall be published by  the Ministry of Commerce.  The Customs shall 
implement the decision from the effective date set forth in the public notice.   The Ministry of Commerce shall notify th e Committee on Safeguards of the relevant 
information prior to the application of a provisional safeguard measure.   
  Article 18  The duration of application of a provis ional safeguard measure shall not exceed 
200 days from the effective date set forth in the p ublic notice regarding the decision on the provisional 
safeguard measure.  
 Article19  Where  a final determination establishes the existence of increase in quantity of an 
import and the injury caused thereby to a domestic in dustry, safeguard measures may be applied.  The 
application of safeguard measures sh all be in the public interest. 
  Safeguard measures may take the form of ta riff increases or quantitative restrictions, etc. 
 
 Article20  Where  a safeguard measure takes the form of tariff increases, the measure shall be 
proposed by the Ministry of Commerce, and, on the basis of such a proposal, the State Council Tariff 
Commission shall make a decision which shall be published by the Ministry of Commerce.  Where a safeguard measure takes the form of quantitative r estrictions, a decision shall be made and published 
by the Ministry of Commerce.  The Customs shall implement the decision from the effective date set 
forth in the public notice.  
  The Ministry of Commerce shall promptly notify the Committee on Safeguards of the decision on the application of a safeguard  measure and the related information. 
 
 Article 21  Where  a quantitative restriction is applied, th e quantity of imports after restriction 
shall not be less than the average quantity of imports  in the last three representative years, unless clear 
justification is given that a different level of the quantitative restriction is necessary to prevent or 
remedy serious injury.    Where a quantitative restriction is applied and it is necessary to allocate quantity among 
exporting countries (regions) or countries (regions) of  origin, the Ministry of Commerce may consult 
with the exporting countries (regions) or countries (regions) of origin concerned in the allocation of quantity.   Article 22  Safeguard measures shall be applied to a product being imported irrespective of 
its source country (region).  
  Article 23  Safeguard measures shall be applied to th e extent necessary to prevent or remedy 
serious injury and to facilitate the adjustment of the domestic industry.  G/SG/N/1/CHN/2/Suppl.3 
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  Article 24  Prior to the application of a safeguard measure, the Ministry of Commerce shall 
provide adequate opportunities for consultations with those governme nts of countries (regions) having 
substantial interests as the exporte rs of the products concerned. 
  Article 25  Where a final determination establishes that no safeguard measures shall be 
applied, the provisional duty that has been levied shall be refunded. 
 
Chapter IV Duration and Review of Safeguard Measures 
 
 Article 26  The period of application of a safeguard measure shall not exceed four years. 
 
 The period of application of a safeguard me asure may be properly extended if the following 
conditions are met:  (1) it has been determined in accord ance with the procedures set forth in these Regulations that 
the safeguard measure continues to be necessar y to prevent or remedy serious injury;  
(2) there is evidence that the domestic indus try concerned is undergoing adjustment; 
(3) the obligations of foreign-related notificati on and consultations have been fulfilled; and 
(4) the extended safeguard measure is not mo re restrictive than the initial one. 
  The total period of application of a safeguard  measure and any extension thereof shall not 
exceed ten years. 
  Article 27  Where the period of application of a safeguard measure exceeds one year, the 
measure applied shall be progressively liberalized at regular intervals during the period of application. 
 
 Article 28  Where the period of application of a safeguard measure exceeds three years, the 
Ministry of Commerce shall conduct a mid-term re view of the measure during the period of its 
application.   The substance of the mid-term review shall in clude, among other things, review of the effect 
of the safeguard measure on the domestic industry,  and the adjustment of the domestic industry. 
 
 Article 29  Where a safeguard measure takes the form  of tariff increases, the Ministry of 
Commerce shall, on the basis of the findings of  the review, put forwar d in accordance with the 
provisions of these Regulations a proposal for the rete ntion, repeal or acceleration of the liberalization 
of the tariff increases, and in light of such a proposal, the State Council Tariff Commission shall make 
a decision which shall be published by the Ministry of Commerce; where a safeguard measure takes 
the form of quantitative restrictions or other forms,  the Ministry of Commer ce shall, on the basis of 
the findings of the review and in accordance with the provisions of these Regulations, make a decision 
on whether or not to retain, repeal or accelerate th e liberalization of the quantitative restrictions and 
publish the decision.  
 Article 30  Where  a safeguard measure is applied again on the same import, the interval 
between the current measure and the previous safegua rd measure shall not be less than the period of 
application of the previous safeguard measu re, and shall be at least two years.  
  Notwithstanding the foregoing provision, a safe guard measure with duration of 180 days or 
less may be applied to the product if the following conditions are met: 
 (1) at least one year has elapsed since the date of application of a safeguard measure to the import 
of the said import; and G/SG/N/1/CHN/2/Suppl.3 
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 (2) such a safeguard measure has not been applied on the same product more than twice in the 
five year period immediately after the date of application of the measure. 
 
Chapter V Supplementary Provisions 
 
 Article 31  Where  any country (region) discriminatorily applies safeguard measures on the 
exports from the People’s Republic of China, the Pe ople’s Republic of China may, on the basis of the 
actual situations, take corresponding me asures against that country (region). 
  Article 32  The Ministry of Commerce shall be respons ible for foreign-related consultation, 
notification and dispute settlement  concerning safeguard measures. 
  Article 33  The Ministry of Commerce may, in acco rdance with these Regulations, formulate 
specific implementing measures.  
 Article 34  These Regulations shall be effective as of 1 January 2002. 
 
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