RESTRICTED
WORLD TRADE G/SG/N/1/CRI/1
30March 1995
ORGANIZATION(95-0746)
Original: Spanish Committee onSafeguards
NOTIFICATION OFLAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TOSAFEGUARD MEASURES
COSTA RICA
Thefollowing communication, dated 15March 1995, hasbeenreceived fromthePermanent
Mission ofCosta Rica.
_______________
PursuanttoArticle12.6oftheAgreementonSafeguards,theGovernmentofCostaRicaattaches
hereto thefulltextoftheCentral American Regulations onUnfair Business Practices andSafeguard
Clause.
Italsowishes tostatethatthecompetent authority forinitiating andconducting investigations
inproceduresforapplyingasafeguardmeasureistheDirectorate-GeneralofCentralAmericanEconomic
Integration.G/SG/N/1/CRI/1
Page2
CENTRAL AMERICAN REGULATIONS ONUNFAIR BUSINESS PRACTICES
AND SAFEGUARD CLAUSE
CHAPTER I
GENERAL PROVISIONS
Article 1.Theexpressions andabbreviations usedinthese Regulations, asindicated below,
shallhavethefollowing meaning:
Directorate orinvestigating authority:
TheDirectorate orDirectorate-General ofEconomic Integration or,asappropriate, thebodycompetent
formatters pertaining toCentral American integration;
Regional industry orCentral American industry:
Thedomestic industry ofallCentral American countries asawhole;
Domestic industry:
Theproducers asawhole ofaCentral American country ofthesame orlikeproducts, orthose whose
collective output constitutes themajor partofthetotaldomestic production ofsuchproducts;
Interested party:
Anatural orlegalperson having alegitimate interest intheinvestigation ofacomplaint concerning
imports involving unfair business practices ortheapplication ofthesafeguard clause;
Third countries:
Countries which arenotparties totheGeneral Treaty onCentral American Economic Integration or
theinstrument replacing it;
Identical article:
Anarticle allthecharacteristics ofwhich coincide withthecomparable article, taking intoconsideration,
interalia,suchfactorsasitsnature,origin,provenance,use,function,quality,trademarkandreputation;
Likearticle orproduct:
Onethatisnotidentical totheproduct withwhich itiscompared buthaving characteristics similar
tothose oftheproduct considered;
Directly competitive article:
Onewhich isnotanidentical orlikearticle interms oftheonewithwhich itiscompared, yetis
substantially equivalent forcommercial purposes because itisintended forthesame useandis
interchangeable;G/SG/N/1/CRI/1
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Convention:
TheConvention ontheCentral American Tariff andCustoms Regime;
Council:
TheCentral American Tariff andCustoms Council;
Committee:
TheTariff Policy Committee;
SIECA:
ThePermanent Secretariat oftheGeneral Treaty onCentral American Economic Integration;
States parties ormember countries:
TheStates parties totheGeneral Treaty onCentral American Economic Integration andtheConvention
ontheCentral American Tariffs andCustoms Regime;
Region:
Allofthecountries which areparties totheGeneral Treaty onCentral American Economic Integration
ortheinstrument replacing it.
Article 2.These Regulations setouttheprovisions intended tocounteract unfair business
practices andtoestablish rulesfortheapplication ofsafeguard clauses inrespect ofgoods fromthird
countries.
Article 3.Forthepurposes oftheseRegulations, "unfair business practices" aretaken tomean
dumping andsubsidies.
Inorder toprevent suchunfair practices bythird countries injuring domestic production,
"countervailing duties" maybeimposed inthecaseofsubsidies and"anti-dumping duties" inthecase
ofdumping. Such duties shallbeimposed when thepractices inquestion cause orthreaten tocause
some injury, verifiable inaccordance withthecriteria setoutinChapter IVofthese Regulations.
Article 4.EachStateparty shallorganize ajointcommission, which shallinclude participation
bytheprivate sector andshallbecoordinated bytheDirectorate.
TheDirectorateshallinvestigate,analyseandassessmatterspertainingtounfairbusinesspractices
ortheapplication ofasafeguard clause andsubmit atechnical study totheJointCommission, whose
opinion shallbetransmitted totheappropriate Minister, inaccordance withthese Regulations.G/SG/N/1/CRI/1
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CHAPTER II
DETERMINATION OFDUMPING
Article 5.Forthepurposes ofthese Regulations, aproduct from third countries istobe
considered asbeing dumped when itisintroduced intoaCentral American country atlessthanitsnormal
value.
Article 6.Forthepurposes ofthese Regulations:
1. Aproduct istobeconsidered ashaving beenintroduced atlessthanitsnormal value when
itsexport price is,successively andexclusively:
(a) Lessthanthecomparable price intheordinary course oftrade inanidentical orlike
product intended forconsumption intheexporting country orcountry oforigin;
(b) Intheabsence ofsuchpriceinthedomestic market oftheexporting country orcountry
oforigin, ifthepriceoftheimported product islessthanthehighest comparable export
priceofanidentical orlikeproduct sentfromtheexporting country orcountry oforigin
toathirdcountry intheordinary course oftrade; or
(c) Intheabsence ofexports tothirdcountries, ifthepriceoftheimported product isless
thantheproduction costoftheproduct intheexporting country orcountry oforigin,
plusareasonable amount forselling costs andforprofits.
2. The"ordinary course oftrade" means habitual trade ortrade during aperiod notexceeding
oneyear, immediately priortothedateofexport tothedomestic market, inthemarket oftheexporting
country orcountry oforigin withregard toidentical orlikegoods, between buyers andsellers who
areindependent ofoneanother.
Article 7.Theexport priceisthepriceactually paidorpayable fortheproduct soldandintended
foraCentral American country. Where there isnoexport price orwhere suchaprice isunreliable
because ofanassociation oranarrangement between theexporter andtheimporter orathirdparty,
theexport price maybecalculated onthebasis oftheprice atwhich theimported products arefirst
resold toanindependent buyer. Iftheproducts arenotresold toanindependent buyer ornotsold
inthecondition asimported, theprice maybecalculated onsuchreasonable basisastheinvestigating
authority maydetermine.
Incalculating theexport price, thenecessary adjustments willbemade totakeaccount ofall
costsincurred untiltheproduct isresold, including allduties andtaxesandareasonable profit margin.
Suchadjustments shallinclude, interalia,thecostoftransport, insurance, maintenance andunloading,
import duties andother taxes afterexportation from theexporting country orcountry oforigin; a
reasonable margin forgeneral, administrative andsales costs, aprofit margin andanycommission
thatisnormally paid.
Article 8.Forthepurposes ofavalid comparison, theprices shallbecompared onthebasis
ofsalesmade atasnearly aspossible thesametime, atthesameleveloftrade, normally attheex-factory
level. Dueallowance shallbemade ineachcaseforthedifferences which affect comparability, such
asphysical characteristics, import duties orindirect taxes, conditions andterms ofsaleandother
differences which affect thecomparison.G/SG/N/1/CRI/1
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Article 9.Incases where products arenotimported directly from thecountry oforigin but
fromanother country, thepriceatwhich theproducts aresoldfromthecountry ofexport totheCentral
American country shallnormally becompared, withthecomparable price inthecountry ofexport.
However, comparison maybemade withthepriceinthecountry oforigin, interalia,when theproducts
aremerely transshipped through thecountry ofexport, orwhen suchproducts arenotproduced in
thecountry ofexport orthere isnocomparable price forthem inthecountry ofexport.
Article 10.Themargin ofdumping isthedifference bywhich theexport price islessthan
thenormal value. Suchmargin shallbecalculated perunitofproduct imported atthedumping price.
CHAPTER III
DETERMINATION OFSUBSIDIES
Article 11."Subsidy" means thedirect orindirect provision ofanyfinancial contribution,
incentive, bonus oraidbytheStateoranyofitsinstitutions fortheproduction, manufacture, export
ortransport ofaproduct. Asubsidy shallalsobeconsidered toexistwhen thefinancial contribution,
incentive, bonus oraidisprovided intheform ofinputs which arethenusedinfinalproduction.
Article 12.Unless otherwise proven, anyoftheactions described intheillustrative listof
export subsidies annexed totheAgreement onInterpretation andApplication ofArticles VI,XVI, and
XXIII oftheGeneral Agreement onTariffs andTrade (GATT) shallbeconsidered tobeinthenature
ofasubsidy.
Article 13.Theamount ofthesubsidy shallbecalculated inmonetary unitsoradvalorem,
perimported unitofsubsidized product.
Theamount shallbeestablished bydeducting, interalia,thecostsnecessarily incurred inorder
tobenefit fromthesubsidy andanyother export duties orcharges. When theinterested party applies
forsuchadeduction, itshallfurnish evidence tojustify theapplication.
CHAPTER IV
DETERMINATION OFINJURY
Article 14."Injury" means material injury toadomestic industry, threat ofmaterial injury
toadomestic industry ormaterial retardation oftheestablishment ofsuchanindustry.
Article15.Adeterminationofinjuryshallbebasedonpositiveevidenceandinvolveanobjective
examination of:
(a) Thevolume oftheimports orimports involving unfair business practices andtheeffect
ofthese practices onprices inthedomestic market forlikeproducts;
(b) Theconsequent impact ofthese imports ondomestic producers ofsuchproducts.
With regard tosubparagraph (a),itshallbeconsidered whether there hasbeenasignificant
increase intheimports, either inabsolute terms orrelative todomestic production orconsumption.
Indetermining theeffect ofsuchincrease onprices ofidentical orlikeproducts inthedomestic market,
itshallbeconsidered whether imports involving tounfair business practices areofaconsiderably lowerG/SG/N/1/CRI/1
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saleprice andwhether theeffect ofsuchimports istodepress prices ofdomestic production toa
considerable degree.
Article 16.Thedetermination oftheeffects ondomestic production ofidentical orlikeproducts
shallinclude anexamination andevaluation ofthemaineconomic factors andindices having abearing
onproduction, suchastheactual andpotential decline inoutput, sales, market share, profits, return
oninvestments, utilization ofcapacity, inventories andemployment.
Theactual orpotential effects oncashflowandontheability toraise capital mayalsobe
examined.
Thislistisnotexhaustive, norcanoneorseveral ofthesefactors necessarily justify adecision.
Article 17.Forthecausal relationship toexist, theinvestigation shallobjectively demonstrate
thatthematerial injury orprejudice orthethreat ofmaterial injury isadirect consequence oftheincrease
intheimports oftheproducts involving unfair business practices.
Ifother factors simultaneously injure thedomestic industry, theinjury caused bythose factors
maynotbeattributed totheimports subject totheinvestigation.
Article 18.Indetermining athreat ofmaterial injury, account shallbetaken, interalia,of
theexport capacity ofthecountry inquestion, thelikelihood oflower domestic prices asaresult of
suchimports, theexistence ofunderused capacity andtheincrease ininventories among national
producers. Inanyevent, thethreat ofinjury shallbebased onfacts, notonsuppositions, andtheinjury
must beimminent.
Article 19.Theeffect ofimports involving unfair business practices shallbeassessed inrelation
tothedomestic production ofthelikeproduct when available datapermit separate identification on
thebasis ofsuchcriteria astheproduction process, producers 'salesandprofits.
When domestic production ofthelikeproduct cannot beseparately identified inaccordance
withsuchcriteria, theeffects oftheimports involving unfair business practices shallbeassessed by
examination oftheproduction ofthenarrowest group orrange ofproducts, which includes thelike
product, forwhich thenecessary information canbeprovided.
Article 20.When imports ofaproduct frommore thanonecountry aresimultaneously subject
toinvestigations intounfair business practices, theeffects ofsuchimports maybecumulatively assessed,
where appropriate, inthelightoftheirroleandimportance incompetition between imported products
andlikedomestic products.
Article 21.When theamount ofthedumping orsubsidy islessthan1percentadvalorem,
itshallbeconsidered insignificant andtheinvestigation shallbeterminated.
Article 22.TheCentral American States reserve therightnottorequire evidence ofinjury
inregard tothirdcountries which donotprovide evidence reciprocally.G/SG/N/1/CRI/1
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CHAPTER V
PROCEDURE INCASES OFUNFAIR BUSINESS PRACTICES
Article 23.Therepresentatives ofthedomestic industry injured bytheimports subject to
investigationandtherepresentativesofproducers'associationswhichconsiderthattheyarebeingaffected
orthreatened byimports involving unfair business practices areentitled toinitiate theprocedure and
shallsubmit totheinvestigating authority areasoned application foraninvestigation oftheircomplaint,
which shallcontain thefollowing minimum information:
(a) General Particulars ofthecomplainant;
(b) Thenature ofthepractice andanyevidence toprove theexistence thereof, including
articles fromtechnical magazines ofinternational repute and/or studies conducted by
internationally recognized technical organizations;
(c) Thecharacteristics oftheproducts involving thepractices inquestion;
(d) Identity oftheimporters andtheexporting country orcountry oforigin;
(e) Evidence toprove serious injury orthreat ofserious injury todomestic production;
and
(f) Theinjury orthreat ofinjury derives from oneormore imports involving unfair
business practices, ofidentical products orlikeproducts bycomparison withthose
produced inthecountry concerned, imported overthepast12months orbeing currently
imported.
Inspecial circumstances, thenational authority mayinitiate theinvestigation without receiving
anapplication, butshallproceed onlywhen ithassufficient evidence under items (b)to(f)above.
Article 24."Domestic industry" means natural orlegal persons producing identical goods
orlikegoods, bycomparison withimported goods subject toinvestigation, provided theyaccount in
themselves ortogether fornotlessthan25percent(25%) ofdomestic production ofthegoods intended
fordomestic consumption.
Article 25.Onreceipt oftheapplication, theinvestigating authority shallcheck ittodetermine
whether itmeets therequirements oftheseRegulations. Ifitisnotcomplete, theparty concerned shall
beadvised sothat,within aperiod ofnotmore than15working daysofthenotification, theparty
provides therelevant documents, failing which, therequest shallberejected andfiled.
Article 26.Once ithasbeenchecked, theapplication shallbeassessed andshallberejected
inareasoned decision ifitdoesnotprovide sufficient evidence tojustify theinitiation ofaninvestigation;
theapplicant shallbeinformed accordingly.
Article 27.Iftheassessment shows thatthere issufficient evidence tojustify initiation ofthe
procedure, theinitiation shallbenotified bypublication intheOfficial Gazette andinanother ofthe
country'spublicationswithahighcirculation,attheexpenseofthepartyconcerned,andtheinvestigating
authority shallmake anyinvestigations thatitconsiders necessary toverify thedetails ofthecomplaint.
Article 28.Theparties shallbeafforded anopportunity toexamine atanytimeinformation
thatisnotconfidential, forthepurpose ofpreparing theirarguments. Anyinformation which, byitsG/SG/N/1/CRI/1
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nature, isqualified bytheinvestigating authority asconfidential maynotbedisclosed orconsulted
bytheparties, unless, intheopinion oftheauthority, itisimportant forcounterarguments, inwhich
caseitshallasktheparty providing theinformation forasummary thatisnotconfidential innature.
Article 29.Inthecourse oftheinvestigation anduntilsuchtimeasadefinitive measure is
ordered, thecompetent authority, without interrupting theinvestigation, shallinitiate, automatically
orattherequest oftheinterested party, aperiod forconciliation inwhich solutions maybeproposed
toterminate theinvestigation. Whenever adirect arrangement isreached, arecord shallbemade,
setting outtheresults and/or undertakings, andtheinvestigation shallbeconsidered tobeterminated.
Once thesuspension oftheinvestigation hasbeenagreed on,theinterested parties shallbenotified
accordingly.
Article 30.When theexporter formally undertakes tocorrect hisprices orcease hisexports,
oriftheGovernment oftheexporting country eliminates thesubsidy inquestion, theinvestigation
maybesuspendedorconsideredtobeterminatedifthecompetentauthorityisconvincedthattheinjurious
effect hasbeenremoved.
Compliance withtheundertakings maybeperiodically reviewed, automatically oronrequest;
andperiodic information mayberequested and,ifthereview reveals failure tocomply, provisional
measures shallbeapplied onthebasis oftheinformation available.
Article 31.Inanyevent, theinvestigation shallbecompleted within sixmonths ofthedate
ofinitiation. Inexceptional circumstances, theperiod maybeextended forthesame amount oftime.
Article 32.Theprocedures established inthisChapter shallnothinder customs clearance,
without prejudice totheprovisions ofArticle 38below, andthefinaldecision onananti-dumping
measure orcountervailing dutyshallbenotified totheinterested parties andpublished intheOfficial
Gazette ineachcountry.
Article 33.Provisional measures maybeadopted atanytimeinthecourse oftheinvestigation
intheevent ofapreliminary determination ofdumping orsubsidization andconsequent injury tothe
domestic industry andiftheinvestigating authority judges suchmeasures necessary toprevent injury
which isdifficult torepair being caused during theperiod oftheinvestigation.
Article 34.Provisional measures shallconsist ofaprovisional dutyguaranteed inaccordance
withdomestic legislation equal totheamount oftheanti-dumping orcountervailing dutyprovisionally
estimated,beingnotgreaterthantheprovisionallyestimatedmarginofdumpingorsubsidy.Theduration
ofprovisional measures maynotexceed sixmonths andmaybeextended forthesameperiod inspecial
cases. Theprovisional measures adopted shallbenotified tothecompetent authority, forcompliance
therewith.
Article 35.Theauthority oftheimporting country shalladopt thedecision whether ornot
toimpose ananti-dumping orcountervailing dutyincases where allrequirements fortheimposition
havebeenfulfilled, andthedecision whether theamount tobeimposed shallbethefullmargin of
dumping oramount ofsubsidy orless. Every effort shallbemade toensure that,when anyofthese
duties isimposed, theamount willbesuchasisnecessary toremedy theinjury, andnotmore, even
though theestimated amount ofdumping orsubsidy sopermits.
Article 36.Ifthedefinitive countervailing oranti-dumping dutyexceeds theguaranteed amount,
thedifference shallnotbedemanded. Ifthedefinitive dutyislessthantheguaranteed amount, an
order shall beissued forprompt reimbursement oftheexcess orrelease oftheguarantee inthe
corresponding amount.G/SG/N/1/CRI/1
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Article 37.Measures toprevent orcorrect distortions caused bydumping andbysubsidies
maynotbeapplied simultaneously inoneandthesame case.
Article 38.Themeasure shallbetemporary andshallapply forsuchtimeasisnecessary to
counteract theunfair business practice thatiscausing theinjury orthreat ofinjury, andshallbesubject
toreview onrequest.
Article 39.When ananti-dumping dutyisimposed inrespect ofanyproduct, suchanti-dumping
dutyshallbecollected ontheimports found tobedumped andcausing serious injury. Wherever
possible, thesupplier orsuppliers oftheproduct concerned shallbenamed. If,however, allofthe
suppliers fromonecountry areinvolved inunfair business practices, oritisimpossible todistinguish
between them, themeasure shallapply toallthesuppliers ofthecountry orcountries inquestion.
CHAPTER VI
SAFEGUARD CLAUSE
Article 40.Theregulations onsafeguard clauses areintended toprovide theindustry ofthe
CentralAmericancountrieswithobjectiveandtemporaryprotectionagainstmassiveimportsofidentical,
likeordirectlycompetitiveproducts,asaresultofunforeseendevelopmentsandtheeffectofinternational
obligationsincurredorregionallyagreedmeasures,includingtariffliberalization,whichcauseorthreaten
tocause serious prejudice inanyofthose countries.
Article 41.Forthepurposes oftheapplication ofsafeguard measures:
(a) Serious prejudice means overall impairment intheposition ofadomestic industry,
understoodtomeantheproducersasawholeoftheidentical,likeordirectlycompetitive
products operating within theterritory ofaStateparty orthose whose collective output
oftheidentical, likeordirectly competitive products constitutes amajor proportion
ofthedomestic production ofthose products;
(b) Indetermining theprejudice, account shallbetaken ofallfactors ofanobjective nature
having abearing onthedomestic industry affected, inparticular, theinability ofa
significant number ofenterprises tooperate atareasonable levelofprofit; significant
unemployment orunderemployment inanindustry; therateandamount oftheincrease
inimports oftheproducts inquestion, inabsolute andrelative terms; theshare of
thedomestic market taken byincreased imports; thesubstantial changes inthelevel
ofsales, production, productivity, capacity utilization, profits andlosses and
employment;
(c) Threat ofserious prejudice means thatmajor impairment isclearly imminent, forwhich
purpose account shallbetaken ofallrelevant factors ofanobjective andquantifiable
nature having abearing onthesituation ofthatindustry, especially those enumerated
inthepreceding subparagraph. Thedetermination ofathreat ofserious prejudice shall
bebased onfactsandnotsuppositions.G/SG/N/1/CRI/1
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Article 42.Indetermining thecausal linkduring theinvestigation:
(a) Itshall beobjectively demonstrated thattheserious prejudice orthreat ofserious
prejudice isadirect andimmediate consequence oftheincrease inimports oftheproduct
inquestion;
(b) Ifother factors simultaneously prejudice todomestic industry, theprejudice caused
bythose factors shallnotbeattributed totheimports subject toinvestigation.
CHAPTER VII
PROCEDURE INSAFEGUARD CLAUSE
Article 43.Theinvestigation procedure toimpose safeguard measures shallbeinitiated on
application.
Article 44.Therepresentatives ofthedomestic industry prejudiced bytheimports subject
toinvestigationandtherepresentativesofproducers'associationsaccountingforamajorpartofdomestic
output areentitled toinitiate theprocedure.
Domestic industry shallmean natural orlegal persons producing identical, likeordirectly
competitive goods bycomparison withthose imported goods subject toinvestigation, provided they
account inthemselves ortogether fornotlessthan25percent(25%) ofdomestic production ofthe
goods intended fordomestic consumption.
Article 45.Theparty concerned shallsubmit totheinvestigating authority awritten statement
clearly indicating thegrounds fortherequest andprovide therelevant proof. Theinitial written
application shallcontain thefollowing minimum information:
(a) Particulars ofthecomplainant;
(b) Thecharacteristics oftheproducts andthemarket forwhich anapplication for
investigation isbeing submitted;
(c) Identity oftheimporters andtheexporting country orcountry oforigin;
(d) Evidence toprove serious prejudice orthreat ofserious prejudice tothedomestic
industry; and
(e) Planofaction forenterprises inthesector concerned fortheperiod ofthesafeguard
measure forwhich anapplication isbeing submitted.
Article 46. Theinvestigating authority shall determine whether therequest meets the
requirements ofthese Regulations. Ifitisnotcomplete, theparty concerned shallbeadvised sothat,
within aperiod ofnotmore than15working daysofthenotification, theparty provides therelevant
documents, failing which, therequest shallberejected andfiled.
Article 47.Ifitmeets therequirements, theinvestigation shallbeinitiated withthecomplaint
submitted, which shallbetransmitted totheparty orparties affected sothat,within 15working days,
theyrespond tothecomplaint andproduce anyevidence inrebuttal thattheyconsider relevant.G/SG/N/1/CRI/1
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Article 48.Theinvestigating authority mayrequest anykindofinformation, including technical
criteria, fromvarious public departments, which shallbeobliged toprovide theinformation. Itmay
alsodemand anyopinions itconsiders appropriate andorder anytypeofmeasure toascertain thealleged
facts.
Article49.Whentheinterestedpartiesrefuseaccessto,ordonotprovide,necessaryinformation
within areasonable period orimpede theinvestigation, preliminary andfinaldecisions maybemade
onthebasis ofthefactsandevidence available.
Article 50.Once apreliminary decision istaken onthesituation, theinvestigating authority
mayrecommend totheappropriate Minister theadoption ofprovisional measures toprevent serious
prejudice tothedomestic industry which isdifficult torepair, during theperiod oftheinvestigation.
Theprovisional measures shallconsist oftemporary tariff increases, guaranteed bybond, which shall
bereimbursed attherequest oftheparties concerned ifitissubsequently established thatthere isno
prejudice orthreat ofprejudice.
Such measures shallbeoperative inaccordance withdomestic legislation andshalllastnot
more than30days, except asprovided forinthelastpartofsubparagraph (c)ofthefollowing Article.
Article 51.Conditions ofapplicability fordefinitive safeguard measures:
(a) Safeguard measures areinstruments oftemporary protection foradjustment ofthe
productive activity affected andshallconsist ofatariff increase, without prejudice to
other non-tariff measures adopted byStates onthebasisoftheirdomestic legislation;
(b) Asafeguard measure shallbeapplied forsuchperiod oftimeasmaybenecessary to
prevent orremedy serious injury andfacilitate adjustment.
(c) Theduration ofthesafeguard measure established bythenational authority shallnot
exceed 30days, which period maybeextended asdecided bytheCouncil. Inany
event, suchperiod shallberegarded asextended untilthedateonwhich theCouncil
adopts therequisite measures;
(d) When theduration ofthesafeguard measure exceeds oneyear, asdecided bythe
Council, itshallbeprogressively liberalized forperiods ofoneyear, tofacilitate the
adjustment oftheproductive activity affected. Ifthemeasure issubsequently extended,
itmaynotbemore restrictive thanitwasattheendoftheinitial period andmust
continue tobeliberalized eachyear;
(e) Asafeguard measure shallbeapplied toaproduct being imported irrespective ofthe
country from which itisimported;
(f) Whenthesafeguardmeasureistheexclusiveconsequenceofregionallyagreedmeasures,
including tariff liberalization, theleveltowhich thecustoms tariff isincreased shall
notexceed theinternationally bound tariff.
Article 52.Thenational investigating authority shallbeincharge oftheinvestigation procedure
untiltherequisite safeguard measures aredetermined.
Article 53.Thefinaldecision terminating theinvestigation shallbenotified totheinterested
parties andtoSIECA andshallbepublished intheOfficial Gazette(s), asappropriate.G/SG/N/1/CRI/1
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Article 54.AStatewhich hasapplied provisional ordefinitive safeguard measures shallnotify
SIECA andsenditastatement ofthereasons therefor within eight daysoftheintroduction ofthe
measures inorder forSIECA toconvene theCouncil pursuant toArticle 8oftheConvention.
Article 55.Iftwonotices arenecessary toconvene ameeting oftheCouncil, theyshalleach
beissued within aperiod offivedaysfrom thedateonwhich SIECA receives thenotification from
theinterested State, sothatthemeeting oftheCouncil atwhich therequisite decision istaken may
beheldwithin theperiod of30daysreferred toinArticle 26oftheConvention. SIECA shall
immediately distribute tomembers oftheCouncil ofthestatement ofreasons oftheState which has
adopted safeguard measures. Inthefirstnotice, SIECA shall consult Council members astothe
desirability ofholding ameeting oftheTariff Policy Committee beforehand.
Article56.TheStatewhichhasappliedthemeasuresprovidedforinArticle50andArticle51(c)
oftheseRegulations, inaddition tothestatement ofreasons referred toinArticle 54above, maysubmit
tothemeeting oftheCouncil adetailed report ofthecauses which compelled ittoapply themeasures,
including thejustification forthemeasures andanyotherdataenabling theCommission totakeaproper
andequitable decision.
Article 57.SIECA shallprovide thedataforexamination ofthematter andpropose tothe
Council and,where appropriate, theTariff Policy Committee, themeasures itconsiders technically
appropriate tosolve thetemporary situation which gaverisetorecourse tothesafeguard clause.
Article 58.IftheCouncil decides thatthemeasures adopted bytheinterested State should
beeliminated, modified, maintained orextended toother Contracting Parties totheConvention, it
shallestablish themanner andperiod inwhich therequisite decision istotakeeffect.
Article 59.States shallinform theCouncil, through SIECA, ofcompliance withthedecisions
thattheCouncil hasadopted ineachcase.
Article 60.Toassist insolving theproblem which gaverisetotheapplication ofthesafeguard
clause, theCouncil mayagree onactions ofamultilateral nature, suchas:
(a) Joint measures ininternational organizations;
(b) Financial andtechnical assistance ofaregional character;
(c) Cooperation with regional specialized organizations; and
(d) Anyother course thatitconsiders appropriate.
Article 61.Measures derived from theprocedures setoutinthisChapter andinChapter V
ofthese Regulations maynotbeapplied simultaneously.
CHAPTER VIII
REGIONAL PROCEDURE
Article 62.Theprocedure referred tointhisChapter shallbefollowed inregional investigations
fortheapplication ofmeasures against unfair business practices.G/SG/N/1/CRI/1
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Article 63.When theregional industry orinparticular theindustry ofanother State party
other thanthedirect importer oftheforeign product isaffected, attherequest oftheGovernment
concerned aregional procedure shallbefollowed bytheTariff Policy Committee andshallbeinitiated
when SIECA receives thefilefromthenational authority, which shallforward itintheoriginal with
fivecopies. Thefileshallcomply withtheterms ofArticle Vofthese Regulations.
Article 64.Within eightdaysofreceipt ofthefile,SIECA shallforward acopytothecompetent
authorities oftheother countries andofficially notify theinterested parties.
Article 65.SIECA shallconduct theappropriate investigations within aperiod of60days
and,when theyarecompleted, shallconvene ameeting oftheDirectors tobeheldwithin 20daysof
thenotice ofthemeeting andshallrecommend technically appropriate measures under theseRegulations.
Article 66. TheCommittee orSIECA mayrequest andgather additional evidence and
information directly fromtheexporters whoarethesubject ofthecomplaint andfromCentral American
producers andimporters. Thebodies concerned mayalsoprovide information orsubmit arguments
inwriting, through SIECA, when theyconsider itappropriate.
Article 67.Initsrecommendation, theCommittee shalltakeaccount ofpositive evidence
regarding:
(a) Dumping practices orsubsidies which distort competition;
(b) Thethreat oformaterial injury caused bysuchpractices, under theterms ofArticle 2
ofthese Regulations; and
(c) Thecausal relationship between thepractices andtheinjury orthreat ofinjury.
Article 68.TheCommittee shall, through SIECA, convene, automatically orattherequest
oftheinterested party, meetings forconciliation inorder tofindadirect solution, andtheundertakings
andfindings shallbeplaced onrecord.
Article 69.TheCommittee shallforward itsrecommendations totheCentral American Tariff
andCustomsCouncil,whichshalldecideontheregionalmeasurestobetakenbygovernmentstoprevent
orcounteract theunfair business practices inquestion. SIECA shall, within three daysfollowing the
adoption oftheCommittee 'srecommendations, convene ameeting oftheCouncil, tobeheldwithin
10daysofthenotice ofthemeeting.
CHAPTER IX
FINAL PROVISIONS
Article 70.Anyamendment oftheterms ofthese Regulations shallbemade bytheCouncil.
Each ofthemember countries shallinform theCouncil, through SIECA, oftheimplementation of
thisinstrument and,where appropriate, theneedtoamend it.
Article 71.Incases notcovered bythese Regulations. States mayresidually apply thelegal
provisions oninternational trade, inkeeping withregional provisions.G/SG/N/1/CRI/1
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CHAPTER X
TRANSITIONAL PROVISIONS
Article 72.Inapplying themeasures referred tointhese Regulations, thegovernments ofthe
member States shallbegoverned bytheterms oftheConvention ontheCentral American Tariff and
Customs Regime andother legalinstruments ofCentral American economic integration.
Article 73.Themeasures adopted priortotheentry intoforce ofthisinstrument tocounteract
unfair business practices, onthebasis ofregional decisions, shallremain inforce, without prejudice
totheterms ofArticle 38ofthisinstrument.
Article 74.Statutory provisions inconsistent withthisinstrument arehereby repealed.
Article 75.These Regulations shallenter intoforce onthefirstdayofMarch onethousand
ninehundred andninety-three andshallbepublished intheOfficial Gazettes oftheStates parties.
Guatemala, 29January 1993