SAFEGUARD MEASURES

R.A. No. 8800 S. 2000

A. Introduction
DEFINITION: Safeguard Measures are trade

remedy measures adopted by the

government to provide domestic industries
relief against imports
EXAMPLES: high tariffs, tariff quotas and
quantitative restrictions (QR)

Purpose
General

Special

To give the affected

Assist farmers whose

domestic industry time to

prepare itself for and
adjust to increased import
competition*

products were previously

protected by quantitative
restrictions

Types: Objective
General

Special

Remove injury and

Assist farmers whose

facilitate structural
adjustments that will
enable an industry to gain
competitiveness

products were previously

protected by QRs that
have been tariffied

Types: Nature
General

Special

Addresses fairly traded

Addresses fairly traded

imports: Increased level of

imports absolute or
relative to production

imports: Volume of imports

exceed a base trigger
level* or price falls below a
trigger level price

Types: Forms of Measure

General

Special

Provisional: tariff increase

Provisional: N/A

Definitive: tariff increase;

Definitive: Additional duty

quantitative restrictions
(e.g. import quota, import
licensing)

not exceeding 1/3 of the

level of the ordinary duty in
effect during the year in
which the action was
taken.

Invocation of SSGs
SPECIAL SAFEGUARD MEASURES may be

invoked, if:
The volume of imports exceeds a trigger level; or
The price of imports falls below a trigger price

In either case, injury to domestic industry

need not be established.

Quantitative Restrictions
QRs are those restrictions which limit the

quantity of merchandise permitted to enter

or leave a country.
Examples: Quotas, importations which need
licensing requirements

B. The Legislation
R.A. No.: 8800
Title: Safeguard Measures Act of 2000
Signed by: Former Pres. Joseph Estrada
Signed on: July 19, 2000
Published: July 24, 2000
Effective: August 9, 2000
IRR: Joint Administrative Order No. 03, s.

2000

Purpose of R.A. No. 8800

General

Special

To relieve domestic

Imposed when import

industries suffering from

serious injury as a result of
increased imports

volume exceeds trigger

level or when actual CIF
import price falls below
trigger price level

What is a Trigger Price?

A price at which an import causes the

importing country automatically to impose a

tariff or quota.
These are used when the importing country
generally wishes to promote free trade but
does not want importers to undercut
domestic industry.

Administrators of RA 8800:
General Safeguard
DTI-BIS / DA
Receives application / petition
Conducts preliminary investigation

Administrators of RA 8800:
General Safeguard
Tariff Commission
Conducts formal investigation
Submits recommendation to DTI / DA Secretary
Monitors domestic industrys progress
Conducts investigation for extension and re-

application of safeguard measure

Evaluates effectiveness of safeguard actions taken
by domestic industry

Administrators of RA 8800:
General Safeguard
Bureau of Customs
Implements the imposition of safeguard measures

Administrators of RA 8800:
Special Safeguard
DA:
Receives application / petition
Conducts verification* within 5 working days from

receipt of petition
Issues Department Order (DO) for the imposition
of a special safeguard duty

C. Procedures
Qualified Petitioners: General Safeguard
Domestic Producers as a whole, of like or directly

competitive products*
The President, or the House or Senate Committee
on Agriculture, or on Trade and Commerce
DTI or DA Secretary, motu proprio**

Qualified Petitioners: Special Safeguard

Any person, whether natural or juridical

DA Secretary, motu proprio*

Where to file petition?

General

Special

DTI for non-agricultural

Department of Agriculture

product
DA for agricultural product

Investigation Stages:
General Safeguard
PRIMA FACIE: DTI-BIS/DA has 5 calendar

days* to decide whether to initiate a

preliminary investigation**
PRELIMINARY: Investigation includes (1)
notification to all interested parties and the
government of the exporting country, and (2)
distribution of questionnaires to parties.

 Has 2 calendar days to initiate preliminary

investigation and notify all interested parties

and the government of the exporting country,
and send proforma respondents
questionnaires to parties.

 Has 30 calendar days from receipt of

response to questionnaire to make

preliminary investigation whether to impose
measure or not.
If AFFIRMATIVE: DTI/DA Secretary issues DO for

imposition of measure
If NEGATIVE: DTI/DA Secretary terminates
investigation

 FINAL: Commission has 120 calendar days

[60 if deemed urgent] from receipt of

endorsement from Secretary to (1) conclude
formal investigation and (2) submit its report
of findings and recommendation to Secretary

 Within 3 calendar days after Secretary makes

decision, he shall advise the Secretary of

Finance to instruct the Bureau of Customs to
impose provisional measure.

 DECISION: Secretary has 15 calendar days

from receipt of Commissions report to make

decision.
If AFFIRMATIVE: Issues DO to implement

imposition of general safeguard measure within 2

days from making decision
If NEGATIVE: Issues (1) DO for termination of
case, (2) written instruction to BOC Chief
authorizing the return of cash bond collected
within 10 days from the date of final decision

Investigation Stages:
Special Safeguard
VERIFICATION: DA Secretary shall verify if

the cumulative import volume of SSG

agricultural product exceeds trigger volume,
actual CIF import price is less than trigger
price
FINDINGS: Secretary shall come up with a
report of findings within 5 working days from
receipt of request

 IMPOSITION: Secretary shall issue DO

requesting Commissioner of Customs

through the Secretary of Finance to impose
an additional special safeguard duty.

D. Elements
General

Special

Like Product

Volume of imports exceed

Increased imports

base trigger level

Price of imports fall below
trigger price level

Injury

Causality

Serious Injury Factors

Rate and amount of increase in imports in

absolute or relative terms

Share of domestic market taken by increased
imports

 Changes in the level of:

Sales
Prices
Production
Productivity
Capacity utilization
Inventories
Profits
Wages; and
Employment of domestic industry

 Significant idling of productive facilities in

domestic industry including the closure of

plants or underutilization of production
capacity
Inability of a significant number of firms to
carry out domes production at a profit; and
Significant unemployment and
underemployment within the domestic
industry

Threat of Serious Injury

Factors
Significant increase in imports
Sufficient production capacity of foreign

exporters
Decline in sales or market share
Growing inventories of investigated product

E. Measures
General Safeguard Measures
PROVISIONALtariff increase either ad valorem

or specific or both
DEFINITIVE may take the following forms

Increase in, or imposition of, any duty

Decrease in or the imposition of a tariff-rate quota
Modification or imposition of any QRs
One or more adjustment measures
Any combination of actions described in P1-4

E. Measures
Special Safeguard Measures
PROVISIONALnot applicable
DEFINITIVE not exceeding 1/3 of applicable out-

quota CUD

0% if price difference is up to 10% of trigger price

30% if price difference is 10%-40%
50% if price difference is 40%-60%
70% if price difference is 60%-75%
90% if price difference exceeds 75% of trigger price*

Duration of Measure
General

Special

Provisional: not exceeding

Shall only be effective until

200 calendar days from

date of imposition
Definitive: maximum of 4
years, extendable for
another 8 years (10 years
for developing countries)

the end of the year in

which it has been imposed.

Application Limitations of
General Safeguard Measures
Yes. (1) extent of redressing serious injury to

domestic industry, and (2) facilitate the

domestic industrys adjustments*
When QRs are used, it shall not reduce the
quantity of imports below average imports
for 3 preceding years
It shall not be applied to a product from
developing countries**

Application Limitations of
Special Safeguard Measures
Special safeguard measures shall not be

applied concurrently with the general

safeguard measures
Recourse to safeguard measures shall be
subject to the provisions on general
safeguard measures as provided in R.A. No.
8800

Additional information
A WTO member (Ex. the Philippines) cannot
choose or recommend the application of general

safeguards on a selective basis

When applying for safeguard measures, the
Philippines must pay for them through
compensation which is the equivalent level of
concessions and other obligations with respect
to the affected exporting WTO members.

The Adjustment Plan

An adjustment plan is the action plan

indicating a set of qualified goals that a

concerned industry commits to undertake in
order to facilitate its positive adjustment to
import competition
It must be submitted to the Commission
within 45 calendar days upon receipt of
notice of submission.

References
2010 and 2013 Primer on Development in Tariffs
and Trade Policy

INTRODUCTION TO SAFEGUARD MEASURES

by World Trade Organization: http://bit.ly/SP6eTq
R.A. No. 8800 (Full text) & Safeguard Measures

Overview by Tariff Commission: http://bit.ly/1kIsncW

http://bit.ly/1paTK5t

Definition: Trigger Price http://bit.ly/1m2vVHd

Presenters
Group 2

Balanghig, Edward
Ballenas, Bernard
Talisic, Rio
Chong, Eric
Doromal, Denia
Retorca, Elixir
Baldevieso,
Daluro, Raul
Remonde, Genis
Miole, Hazel
Cesar, Kim