WORLD TRADE  
ORGANIZATION  G/SG/N/1/PER/2/Suppl.2 
31 August 2004 
 
 (04-3603) 
Committee on Safeguards Original:   Spanish 
  
 
 
NOTIFICATIONS OF LAWS, REGULATIONS AND ADMINISTRATIVE  
PROCEDURES RELATING TO SAFEGUARD MEASURES 
 
PERU 
 
Supplement
 
  
 The following communication, dated 24 August 2004,  is being circulated at the request of the 
delegation of Peru.  
_______________ 
 
 
 The Permanent Mission of Peru to the Intern ational Organizations at Geneva presents its 
compliments to the Secretariat of the World Trade Organization (Committee on Safeguards) and, in accordance with the provisions of Article 12.6 of  the Agreement on Safegu ards, has the honour to 
submit herewith the text of Supreme D ecree No. 017-2004-MINCETUR of 20 August 2004, 
amending Supreme Decree No. 020-98-MITINCI, which approved regulations governing the 
application of the aforesaid Agreement.   
 G/SG/N/1/PER/2/Suppl.2 
Page 2  
 
  
AMENDMENTS TO SUPREME DECR EE NO. 020-98-ITINCI APPROVING 
REGULATIONS GOVERNING THE IMPLEMENTATION OF THE 
AGREEMENT ON SAFEGUARDS AND THE AGREEMENT 
ON TEXTILES AND CLOTHING OF THE 
WORLD TRADE ORGANIZATION 
  
SUPREME DECREE No.  017-2004-MINCETUR 
 THE PRESIDENT OF THE REPUBLIC  CONSIDERING: 
 That the regulations governing the applica tion of the Agreement on Safeguards and the 
Agreement on Textiles and Clothing of the Worl d Trade Organization (WTO), incorporated in 
domestic legislation by Legislative Decision No. 26 407, were approved by virtue of Supreme Decree 
No. 020-98-ITINCI; 
 That it has been deemed appropriate to review and amend the aforementioned Supreme 
Decree No. 020-98-ITINCI in order to allow eff ective implementation of the WTO Agreement on 
Safeguards;  
In accordance with the provisions of para graph 8 of Article 108 of Peru's Political 
Constitution; 
 DECREES: 
 Article 1.   Articles 1, 4, 5, 8.4, 9-16, 23, 24.3, 27, 29, 30, 31.3, 32-35, 36.3, 43 and 47 of 
Supreme Decree No. 020-98-ITINCI shall be amended as follows: 
 " Article 1.   The purpose of this Supreme Decree is  to establish regulations to govern the 
Agreement on Safeguards of the World Trade Orga nization (WTO), which is incorporated in 
domestic legislation by virtue of  Legislative Decision No. 26407. 
 The general safeguard provided  for in the WTO Agreement on Safeguards may be applied to 
any product, including agricultural products." 
 " Article 4.  For the purposes of this Decree, the following meanings shall apply: 
Serious injury :  A significant overall impairment in the position of a domestic industry; 
Threat of serious injury :  Serious injury that is clearly imminent, the determination of which 
shall be based on facts and not merely on a llegation, conjecture or remote possibility; 
Domestic industry :  The producers as a whole of the like or directly competitive products 
operating within Peruvian territory, or those whose collective output of the like or directly competitive 
products constitutes a major proportion of the do mestic production of those products.  A major 
proportion of domestic production shal l be understood to mean an enterprise or group of enterprises 
accounting for at least 50 per cent of total domestic production of the product concerned.  G/SG/N/1/PER/2/Suppl.2 
 Page 3 
 
 
  Like product :  A product of the domestic industry which is identical in its physical 
characteristics to the imported product concerned, or which, while not alike in all respects, has 
characteristics closely resembling those of the imported product. 
 Directly competitive product :  A product of the domestic industry which, while not similar 
to the product with which it is compared, is essentia lly equivalent for trade purposes as it is devoted to 
the same use and is interchangeable  with the product in question. 
 Critical circumstances:  Circumstances in which there is  clear evidence that increased 
imports have caused or are threatening to cause ser ious injury and any delay in the adoption of a 
measure by the competent authorities would cause da mage to the domestic industry that would be 
difficult to repair. 
 Interested parties :  Interested parties shall be cons idered to include exporters, foreign 
producers, governments of supplier countries, importers and trade or business associations 
representative of the exporting or importing producer s of the like or directly competitive product; 
associations of  consumers whose interests are affected  shall also be considered as interested parties. 
 Safeguard measure :  An urgent measure of a temporary nature taken for the purpose of 
offsetting the serious injury or threat of serious injury to a domestic industry caused by a significant 
increase in imports in absolute terms or relative to domestic production. 
 Adjustment plan :  A programme, subject to review and follow-up by the competent 
authorities, which the firms applying for safegua rd measures undertake to implement during the 
period of application of such measures in order inter alia  to facilitate the more orderly transfer of 
resources for more productive uses,  to increase competitiveness or to adapt to new conditions of 
competition. 
 Imported product :  Products which have entered the country for consumption or products 
which are about to be imported. 
 Agreement :  The Agreement on Safeguards of the World Trade Organization. 
 WTO :  World Trade Organization. 
 'Days' :  Working days, unless expressly provided otherwise." 
 " Article 5.  A Multisectoral Commission shall be established to apply the safeguard measures 
provided for in this Decree.  The Commission's membership shall comprise the Minister of the 
Economy and Finance, the Minister of Foreign Trade and Tourism and the Minister of the sector to which the affected domestic industry belongs.  The decisions on application or non-application 
adopted by the Commission shall be made official by Supreme Decree of the Ministry of Foreign 
Trade and Tourism, endorsed by the Mini sters of the Multisectoral Commission.  
 For the purposes of this Decree, 'Commission'  shall be taken to mean the Commission 
established under this Article."  
 " Article 8.  An application for the imposition of safeguard measures shall include:   
 4. The percentage of domestic production of  the like or directly competitive product 
accounted for by these firms." G/SG/N/1/PER/2/Suppl.2 
Page 4  
 
  " Article 9.   Except in the case provided for in th e following Article, investigations to 
determine an increase in imports in such quantities and under such conditions as to cause or threaten 
to cause serious injury to a domestic industry sha ll be initiated upon written application addressed to 
the investigating authority."  
 " Article 10.   In special circumstances, the investiga ting authority may initiate an investigation 
without having received a written application by a dom estic industry.  It shall do so only if it has 
sufficient evidence of serious injury or threat of serious injury as a result of a significant increase of 
imports in absolute terms or relative to domestic production. 
 'Special circumstances' shall be considered to include situations where the domestic industry 
is disorganized, fragmented or in the national interest." 
 " Article 11.  Within a time-limit of one (1) month, extendable by one (1) further month, from 
the date of submission of the application, the investigating authority may: 
 (a) Initiate the investigation, by publis hing the corresponding decision notifying the 
public of the initiation of the investigation; or, 
 
 (b) Allow the applicant fifteen (15) days in  which to meet the requirements laid down in 
this Decree.  This period shall be calcu lated from the day following the corresponding 
request and may be extended for a further fifteen (15) days. 
  Once the requirements have been met, the in vestigating authority shall have a period of 
fifteen (15) days in which to take a decision. 
 
 If the necessary documents are not provided in an  appropriate form within the time-limit, the 
investigating authority shall declare the applicati on inadmissible and shall notify the applicant of the 
reasons for that decision; or  
 (c) Reject the application on the grounds that it is unfounded and notify the applicant of 
the reasons for the rejection." 
  " Article 12 .  Immediately after an investigation has been initiated, the investigating authority 
shall notify the countries or economies whose exports  might be affected by the application of a 
possible safeguard measure, so that they may submit evidence and state their views. 
 
 Without prejudice to the provisions of the preceding paragraph, the Commission may decide to apply safeguard measures on a provisional basis, in accordance with the provisions of the Agreement on Safeguards and this Decree.  
 Within thirty (30) days of the publication of  the decision to initiate an investigation, the 
applicant shall submit a report containing the genera l outline of an adjustment plan and substantiating 
the objectives associated with the adjustment of the domestic industry to competition from imports 
that it is wished to achieve through imposition of the safeguard measure.       Should the Multisectoral Commission decide to apply a definitive safeguard measure, the 
applicant shall present the adjustment  plan to the Ministry of the sector concerned within a period of 
60 calendar days, which may be extended for a fu rther 30 days, from the time the measure is first 
applied.  In ex officio  investigations, the adjustment plan shall be presented by the domestic industry 
or the Ministry of the sector to which the affected domestic industry belongs." 
  G/SG/N/1/PER/2/Suppl.2 
 Page 5 
 
 
  " Article 13.   The investigation shall be initiated by  the decision published in the Official 
Journal 'El Peruano', which shall also be posted on the website of the National Institute for the 
Defence of Competition and the Protection of Inte llectual Property (INDECOPI). The interested 
parties shall have a period of thirty  (30) days from the day following publication in which to submit in 
writing any evidence or arguments they consider re levant in defence of their interests in the 
investigation.   
  The investigating authority shall be responsible , in coordination with the Ministry of Foreign 
Trade and Tourism, for notifying the decision to  initiate an investigation to the Committee on 
Safeguards of the WTO, in accordance with th e requirements laid down by the Committee on 
Safeguards. 
  The time-limits allowed to foreign producers or exporters shall take account of the factor of 
distance."  
 " Article 14.   The decision to initiate an investigation shall contain: 
   (a) The identity of the applicant, where the application is made by a party;  
   (b) a detailed description of the product or produc ts that have been or are being imported, 
with an indication of their tariff heading; 
 
 (c) a description of the domestic product similar to or directly competing with the 
product that has been or is being imported; 
  (d) information about the increase in imports and the serious injury or threat thereof; 
 
 (e) the period under investigation;   (f) the time-limits for the determination or submission of documents, notices, date of 
hearing, etc.;  and 
 
 (g) an express invitation to all parties that ma y have an interest in stating their views on 
the subject-matter of the investigation." 
 
 "Article 15.   The investigating authority may request the data and information it deems 
relevant for the fulfilment of its tasks directly fro m the interested parties, customs agents, transport 
and other companies and public or private sector  bodies, which must provide the information in 
question within the established time-limits, on pain of liability.   When the information requested by the inves tigating authority is not provided within the 
time-limits laid down in this Decree,  or when the investigation is seriously impeded, findings may be 
made on the basis of the available data.  If the inves tigating authority finds that  an interested party has 
supplied it with false or misleading information, it shall disregard such information and may use the 
data available.   Information received pursuant to the regula tions which follow may be used only for the 
purpose for which it was requested."  
 "Article 16.   The investigating authority shall have a maximum of six (6) months in which to 
conclude the investigation.  This period shall be cal culated from the date of publication in the Official 
Journal 'El Peruano' of the investigating aut hority's decision to initiate an investigation. G/SG/N/1/PER/2/Suppl.2 
Page 6  
 
  Once the investigation has been concluded, th e investigating authority shall submit its report 
to the Commission, which shall have a period of  one (1) month to assess the appropriateness of 
initiating the consultation process provide d for under the WTO Agreement.   
 The Commission shall have a period of no more than 15 days from the end of the consultation 
process to decide whether or not to apply the safe guard measure, in accordance with the provisions of 
the Agreement." 
 " Article 23.   For the purposes of an affirmative or negative, preliminary or final 
determination of serious injury or threat thereof, the investigating authority shall draw up a technical 
report setting out all relevant factors of an objectiv e and quantifiable nature having a bearing on the 
determination, together with its assessment or es timate of the likely effects of a provisional or 
definitive measure, as the case may be. 
  Once it has arrived at an affirmative or negativ e determination of serious injury or threat 
thereof caused by increased imports, the investiga ting authority shall transmit copies of that 
determination, with the corresponding technical repo rt, to the Commission and to the Ministry of 
Foreign Trade and Tourism (MINCETUR), for that body to make the corresponding notification to 
the WTO Committee on Safeguards."   "Article 24.   The determination as to the existence or  absence of serious injury or threat 
thereof shall contain:  
 3.  A list of the countries or economies from which Peru imports the product under 
investigation."    " Article 27.   The safeguard measures shall consist in the application of a customs duty." 
 
 " Article 29.   In critical circumstances and at any stag e of the investigation where delay of any 
kind would cause damage to the domestic industry that  it would be difficult to repair, the investigating 
authority, at the request of a party or ex officio , as the case may be, shall draw up a preliminary 
technical report to be used by the Multisectoral  Commission as a basis for its decision on the 
application of provisional safeguard measures.    
 The aforementioned report shall contain all re levant factors of an objective and quantifiable 
nature that may serve to assess the relevance of th e application of a provisional safeguard measure.  
The report shall be based on the existence of eviden ce in support of a preliminary determination that 
increased imports have caused, or are th reatening to cause, serious injury. 
 
 Within a period of fifteen (15) days from the day following the submission of the technical 
report by the investigating authority, the Commissi on shall decide, on the basis of the above report, 
whether or not to apply prov isional safeguard measures." 
  " Article 30.   The decision as to the adoption of provisional measures shall be taken by the 
Commission on the basis of the preliminary technical report prepared by the investigating authority.  
Once the decision on adoption has been taken a nd before the measure is introduced, MINCETUR 
shall make the necessary notification to the WTO Committee on Safeguards.  Immediately after the 
measure has been introduced, the consultations refe rred to in Article 12.4 of the Agreement shall be 
initiated."  
 " Article 31.   The text providing for the adoption of  a provisional safeguard measure shall 
contain:  G/SG/N/1/PER/2/Suppl.2 
 Page 7 
 
 
   3. A list of the countries or economies fro m which Peru imports the product under 
investigation."  
 " Article 32.   Provisional safeguard measures shall ha ve a maximum duration of 200 calendar 
days and may be suspended before the date of their expiration by decision of the Multisectoral 
Commission.   
 
 When it is decided to adopt a definitive safe guard measure, the period of application of any 
provisional measure shall be reckoned as part of the total period of duration of the definitive 
measure."  
 " Article 33.   Provisional safeguard measures shall be applied only in the form of an increase 
in customs duties.   The body responsible for the assessment, guarantee and implementation of safeguard 
measures shall be the National Tax Ad ministration Authority (SUNAT).   
 
 The posting of security shall not be permitted in the case of definitive safeguard measures. 
  Provisional and definitive safeguards shall be  applied immediately to goods for which 
customs clearance for domestic use is requested during the period for which the measures are in 
force." 
 
 " Article 34.  The amount of a provisional safeguard measure shall be paid or guaranteed for 
payment by the importer, by lodging a security payable to the SUNAT.    When the amount of a definitive safeguard me asure is higher than that of a provisional 
safeguard measure that has been paid or guarant eed, the excess shall not be payable.  Conversely, 
provisional duties collected in an amount higher than that fixed for a definitive measure shall be refunded.   In the event that no definitive safeguard measu re is established, reimbursement of the full 
amount paid shall be ordered promptly, or the secu rity given for the amount of the provisional duties 
imposed shall be refunded or released." 
  " Article 35.  In order to arrive at an affirmativ e determination concerning the imposition of 
definitive safeguard measures, the investigati ng authority shall submit to the Commission the 
corresponding technical report on the serious injury caused or threatened by the increased imports.  
The report shall also contain an assessment of the li kely effects of the application of the safeguard 
measure and the information that emerged during th e investigation that is relevant, so that the 
Commission may assess the public interest affected a nd decide whether or not it is appropriate to 
apply safeguard measures and the amount of such measures.      The Commission shall assess the general public interest of the country, taking into 
consideration the technical report by the investiga ting authority and the effects of the imposition of 
such measures both at national leve l and in regard to trade relations with countries possibly affected, 
particularly in cases where application of the safeg uard has the effect of exceeding the tariff level 
bound by Peru in the WTO.  
 Once the decision to take a definitive measur e has been adopted, the Ministry of Foreign 
Trade and Tourism shall make the corresponding no tification to the WTO Committee on Safeguards." 
 G/SG/N/1/PER/2/Suppl.2 
Page 8  
 
  " Article 36.  The text whereby the Multisectoral Commi ssion proposes to adopt or establishes 
the application of a definitive safeguard measure shall contain: 
  3. A list of the countries or economies from which Peru imports the product under investigation."  
 
 " Article 43.  A safeguard measure may be extended ex officio at the request of the 
Multisectoral Commission or on the application of a part y no less than six months before expiry of the 
period prescribed for the adoption of the initial measur e.  To that end, the procedure provided for the 
adoption of the original measure shall be follo wed, to the extent that it is applicable." 
 
 " Article 47.   A safeguard measure may be applied again to imports of a product that has 
previously been subject to such a measure, adopt ed in accordance with the Agreement, after a period 
of time equal to half that during which such a meas ure had been previously applied, provided that the 
period of non-application is at least two years."   
 Article 2.   Article 8.10 of Supreme Decree No . 020-98-ITINCI is hereby revoked. 
 
 Article 3.  Any reference made to the Ministry of Industry, Tourism, Integration and 
International Trade Negotiations within the framework of Supreme Decree No. 020-98-ITINCI, 
should be understood to apply to the Mi nistry of Foreign Trade and Tourism. 
 
 Article 4.  This Supreme Decree shall be endorsed by the Chairman of the Council of 
Ministers, the Minister of Foreign Trade and Tourism,  the Minister of the Economy and Finance and the Minister of Production.    
 Done at Government House, Lima, on the nineteenth day of the month of August of the year 
two thousand and four.  Alejandro Toledo, Constitutional President of the Republic  
Carlos Ferrero, Chairman of the Council of Ministers  
Alfredo Ferrero, Minister of Foreign Trade and Tourism 
Pedro Pablo Kuczynski, Minister of the Economy and Finance  
Javier Sota Nadal, Minister of Education, responsible for the Production Portfolio   G/SG/N/1/PER/2/Suppl.2 
 Page 9 
 
 
 Supreme Decree of 18 December 1998 (published on 19 December 1998). 
 
APPROVING REGULATIONS GOVERNING THE AGREEM ENT ON SAFEGUARDS 
AND THE AGREEMENT ON TEXTILES AND CLOTHING 
OF THE WORLD TRADE ORGANIZATION 
  
SUPREME DECREE NO. 020-98-ITINCI  
 THE PRESIDENT OF THE REPUBLIC 
 CONSIDERING: 
 That, by virtue of Legislative Decision No. 26407, the legislature incorporated in domestic 
legislation the Agreement Establishing the Wo rld Trade Organization (WTO) and the Multilateral 
Agreements on Trade in Goods contained in the Fi nal Act of the Uruguay Round signed at Marrakesh, 
Morocco, on 15 April 1994;  
 That the aforementioned Multilateral Agreemen ts on Trade in Goods include the Agreement 
on Safeguards designed to strengthen Article XIX of  the GATT and regulate the procedures that may 
be followed by WTO Members in cases involving massive imports of goods which cause or threaten to cause serious injury to a domestic industry, and the WTO Agreement on Textiles and Clothing 
(ATC), which establishes the transitional safe guard for textile pro ducts and clothing; 
 
 That, in signing the Agreement on Safeguards,  WTO Members recognized the importance of 
structural adjustment and the need to enhance rath er than limit competition in international markets; 
  That a safeguard measure can be applied onl y on the basis of a pre-established and public 
procedure, inasmuch as countries are obliged to publis h promptly any regulations adopted with regard 
to investigative procedures for the possi ble application of safeguard measures; 
  That it is accordingly desirable to approve the necessary regulatory measures to facilitate 
implementation of the WTO Agreement on Safeguards;  
 That, in accordance with the in ternational obligations undertaken by Peru, the WTO must be 
notified of the laws, regulations and administrativ e procedures which Peru is entitled to adopt in 
respect of safeguard measures;   In accordance with the provisions of para graph 8 of Article 108 of Peru's Political 
Constitution; 
 
 DECREES: 
  TITLE I:   GENERAL PROVISIONS 
  Article 1.   The purpose of this Supreme Decree is to establish regulations to implement the 
rules laid down in the Agreement on Safeguards an d the Agreement on Textiles and Clothing of the 
World Trade Organization (WTO), incorporated in  national legislation by Legislative Decision 
No. 26407.  
 The general safeguard provided  for in the WTO Agreement on Safeguards may be applied to 
any product, including agricultural products, with the exception of products subject to the provisions G/SG/N/1/PER/2/Suppl.2 
Page 10  
 
 of the WTO Agreement on Textiles and Clothing which have not yet been integrated into the general 
regime (GATT 1994), pursuant to Article 2 of that Agreement. 
 
 Article 2.   The safeguard measures applicable to im ports effected in the framework of the 
integration treaties and bila teral trade agreements to which Peru is a party shall be governed by the 
provisions of such treaties. 
  Article 3 .  Safeguard measures shall be applied when a product, irrespective of its source, is 
being imported in such increased quantities, absolu te or relative to domes tic production, and under 
such conditions as to cause or th reaten to cause serious injury to  the domestic industry that produces 
like or directly competitive products. 
  Safeguard measures shall be applied to a produc t being imported irrespective of its origin, in 
accordance with the provisi ons of the Agreement. 
 
 Article 4.   For the purposes of this Decree, the following meanings shall apply: 
  Serious injury:   A significant overall impairment in the position of a domestic industry. 
  Threat of serious injury:   Serious injury that is clearly imminent, the determination of which 
shall be based on facts and not merely on a llegation, conjecture or remote possibility. 
 
 Domestic industry:   The producers as a whole of the lik e or directly competitive products 
operating within Peruvian territory, or those whose collective output of the like or directly competitive 
products constitutes a major proportion of the do mestic production of those products.  A major 
proportion of domestic production shal l be understood to mean an enterprise or group of enterprises 
accounting for at least 50 per cent of total dom estic production of the particular product. 
 
  Exceptionally, in the case of fragmented domestic industries involving an extremely high 
number of producers, an investigation may be initiate d with the support of at least 25 per cent of the 
total domestic industry, where that situation is jus tified and duly substantiate d in the opinion of the 
investigating authority. 
 
  Like product:   A product of the domestic industry which is identical in its physical 
characteristics to the imported product concerned, or which, while not alike in all respects, has 
characteristics closely resembling those of the imported product.  
  Directly competitive product :  A product of the domestic industry which, while not similar 
to the product with which it is compared, is essentia lly equivalent for trade purposes as it is devoted to 
the same use and is interchangeable  with the product in question. 
 
  Critical circumstances :  Circumstances in which there is clear evidence that increased 
imports have caused or are threatening to cause ser ious injury and any delay in the adoption of a 
measure by the competent authorities would cause da mage to the domestic industry, which it would 
be difficult to repair. 
   Interested parties :  Interested parties shall be cons idered to include exporters, foreign 
producers, governments of supplier countries, importe rs, trade or business associations representative 
of the exporting or importing producers of the like or directly competitive product;  associations of  
consumers whose interests are affected shall also be considered as interested parties. 
  G/SG/N/1/PER/2/Suppl.2 
 Page 11 
 
 
   Safeguard measure:   An urgent measure of a temporary nature taken for the purpose of 
offsetting the serious injury or threat of serious injury to a domestic industry caused by a significant 
increase in imports in absolute terms or relative to domestic production. 
   Adjustment plan:   A programme, subject to review and follow-up by the competent 
authorities, which the firms applying for safegua rd measures undertake to implement during the 
period of application of such measures in order inter alia  to facilitate the more orderly transfer of 
resources for more productive uses,  to increase competitiveness or to adapt to new conditions of 
competition. 
 
  Imported product :  Products which have entered the country for consumption or products 
which are about to be imported. 
 
 Agreement:   The Agreement on Safeguards of the World Trade Organization. 
 
 WTO :  World Trade Organization. 
  'Days':   Working days, unless expressly provided otherwise. 
 
 TITLE II:  COMPETENT AUTHORITY 
  Article 5.   A Multisectoral Commission shall be established to apply the safeguard measures 
provided for in this Decree.  The Commission's membership shall comprise the Minister of the 
Economy and Finance, the Minister of Industry, Tourism, Integration and International Trade 
Negotiations and the Minister of the sector to which the affected domestic industry belongs.  
Decisions taken by the Commission shall be made of ficial by Ministerial Resolution of the Ministry 
of Industry, Tourism, Integration and International Trade Negotiations. 
  For the purposes of this Decree, 'Commission' shall be taken to mean the Commission set up 
under this Article.    Article 6.   The Dumping and Subsidies Commission of the National Institute for the Defence 
of Competition and the Protection of Intellectual Prope rty, hereinafter the investigating authority, is 
the body responsible for the investigation provided  for under the procedure for the application of 
safeguard measures pursuant to this Decree.   Article 7.   Decisions relating to the application,  suspension and revocation of safeguard 
measures, and to the modification or extension of th e time-limits for their application, shall be the 
exclusive responsibility of the Multisectoral Commi ssion and shall be taken on the basis of the 
technical report prepared by the investigating au thority as a result of the investigation carried out. 
 
 TITLE III:  INVESTIGATIONS 
 
 CHAPTER I:  APPLICATION FOR THE INITIATION OF AN INVESTIGATION 
 
 Article 8 .  An application for the imposition of safeguard measures shall include: 
 
1. A description of the imported product, it s tariff classification and the customs duties 
in force. 
 2. A description of the like or directly competitive product.  3. The names and addresses of the firms or entities represented in the application. G/SG/N/1/PER/2/Suppl.2 
Page 12  
 
  
4. The percentage of domestic production of  the like or directly competitive product 
accounted for by those firms and proof of  the representativeness of the domestic 
industry, in accordance with the definition contained in Article 4 of this Decree. 
 
5. Import data for the previous three calendar years or another period adequately 
justified as representative for the industry , which show the increase in the imports 
under investigation in absolute terms or  relative to domestic production.  Such 
information shall as far as possible be submitted on a monthly basis. 
 
6. Data on the volume and value of domestic production of the like or directly 
competitive product for the previous three calendar years or another period adequately justified as representative for the industry.  Such information shall as far as possible 
be submitted on a monthly basis. 
 
7. Quantitative data indicating the degree of serious injury or threat thereof to the 
domestic industry for the period referred to in  the previous paragraph, including but 
not confined to the following: 
 
  (a) With regard to serious injury: 
 
  (i) A significant idling of installed production capacity in the domestic industry, 
including data on the closure of plan ts or the under-utilization of production 
capacity;  
   (ii) the inability of a significant number of domestic firms to  carry out production 
activities at a reasonable level of profit; 
   (iii) substantial unemployment or a signi ficant level of underemployment within 
the sector of the domestic industry and the domestic industry as a whole; 
   (iv) changes in the level of prices,  production, productivity and sales;  and 
 
  (v) any other data considered relevant.    (b) With regard to the threat of serious injury:  
  (i) Evidence of an increase or imminent  increase in imports in such quantities 
and under such conditions as to threat en to cause serious injury to the 
domestic industry; 
   (ii) a decline in sales or market share, a higher and growing inventory (whether 
maintained by domestic producers, importers, wholesalers or retailers), and a 
downward trend in production, profits, wages, productivity or employment 
(or growing underemployment) in the domestic industry; 
   (iii) the extent to which firms in th e domestic industry are unable to generate 
adequate capital to finance the modern ization of their domestic plants and 
equipment, or are unable to maintain  existing levels of expenditure for 
research and development; 
  G/SG/N/1/PER/2/Suppl.2 
 Page 13 
 
 
   (iv) the extent to which imports are be ing diverted to the Peruvian market owing 
to restraints in the markets of third countries or seasonal surpluses at source or points of origin. 
 8. Causal link:  An explanation and descrip tion of the presumed causes of the injury or 
threat of injury and the extent to which such in jury or threat of injury is attributable to 
the imports under investigation, based on the relevant data, and an explanation 
demonstrating that the injury or threat of injury cannot be attributed to causes other 
than imports. 
 
9. A declaration describing the specific purposes for which Government action is 
sought, for example, in order to facilitate th e orderly transfer of resources for more 
productive uses, to increase competitiveness,  or to adapt to new conditions of 
competition, as well as the level of the measure considered necessary to ensure 
achievement of the objectives pursued.   
 
10. Presentation of a financial report whic h quantifies the impact of the measure 
requested on the final and intermediate c onsumers of the product concerned, and on 
the public interest. 
 11. If critical circumstances are allege d, data on the following factors: 
 
  (a) The factual grounds which serve to demonstrate that the increased imports 
under investigation are causing or threatening to cause serious injury, and that any delay in taking measures woul d cause damage to the industry which 
it would be difficult to repair; 
 
  (b) a declaration specifying the level of the provisional measure requested and 
the underlying justification for that remedy.   
 
 CHAPTER II:  PROCEDURE 
 
 Article 9.   Except in the case provided for in th e following Article, investigations to 
determine an increase in imports in such quantities and under such conditions as to cause or threaten 
to cause serious injury to a domestic industry sha ll be initiated upon written application addressed to 
the Dumping and Subsidies Commission of INDECO PI by a firm or group of firms representing a 
major proportion of the total domestic industry producing the product under investigation, in 
accordance with the definition contained in Article 4. 
  Article 10 .  In exceptional circumstances, the i nvestigating authority may initiate the 
investigation ex officio , provided that it is in the national inte rest and subject to the requirement of 
evidence that the domestic industry affected is materia lly not able to submit the necessary application.  
In such cases there must be adequate evidence that increased imports, in absolute or relative terms, are 
causing or threatening to cause serious injury to the domestic industry.   
  Article 11 .  Within a time-limit of one (1) month, extendable by one (1) further month, from 
the date of submission of the application, the investigating authority may:  
 (a) Accept the application and take the necessar y decision to initiate an investigation; or 
  (b) allow the applicant fifteen (15) days in  which to meet the requirements laid down in 
this Decree.  This period shall be calcu lated from the day following the corresponding 
request and may be extended for a further fifteen (15) days. G/SG/N/1/PER/2/Suppl.2 
Page 14  
 
  
 Once the requirements have been met, the in vestigating authority shall have a period of 
fifteen (15) days in which to take a decision.   If the necessary documents are not provided in an  appropriate form within the time-limit, the 
investigating authority shall declare the appli cation inadmissible and shall issue the corresponding 
decision, which shall be notified to the applicant.   (c) Reject the application on the grounds th at it is unfounded and issue the corresponding 
decision, which shall be notified to the applicant. 
 
 Article 12.   Immediately after an investigation has been initiated, the investigating authority 
shall notify the governments of the countries whose ex ports could be affected by the application of a 
possible safeguard measure so that they may submit evidence and state their opinions. 
 
 Without prejudice to the provisions of the preceding paragraph, the Commission may decide 
to apply safeguard measures on a provisional basis, in accordance with the provisions of the Agreement on Safeguards and this Decree.   Within thirty (30) days of the publication of  the decision to initiate an investigation, the 
applicant shall submit a duly substantiated plan for the adjustment of the domestic industry to 
competition from imports, in accordance with the objectives it is wished to achieve through 
imposition of the measure, as described in the application.  
Article 13.   The decision to initiate an investigation shall be notified to the interested parties 
through the Official Journal 'El Peruano', so that within a period of thirty (30) days from the day 
following publication, they may submit in writing an y evidence or arguments they consider relevant 
in defence of their interests in the investigation.   The investigating authority shall be responsib le, with the Ministry of Industry, Tourism, 
Integration and International Tr ade Negotiations, for coordinating notification of the decision to 
initiate an investigation to the Committee on Safegu ards of the WTO.  Such notification shall be 
effected immediately after the investigation has b een initiated, in accordance  with the requirements 
laid down by the Committee on Safeguards.   The time-limits allowed to foreign producers or exporters shall take account of the factor of 
distance. 
 
 Article 14.   The decision to initiate an investig ation shall contain at least the following 
information:   (a) The identity of the applicant;  
 (b) a detailed description of the product or pr oducts that have been or are being imported, 
with an indication of their tariff heading; 
  (c) a description of the domestic product alike to or directly competitive with the product 
that has been or is being imported; 
 
 (d) the period under investigation;   (e) the time-limits for the determination or submission of docum ents, advertisements, 
etc.;  G/SG/N/1/PER/2/Suppl.2 
 Page 15 
 
 
  
 (f) the name of the exporting country or countries and the necessary information to 
ensure accurate identification of the product concerned and its origin. 
  Article 15.   The investigating authority may requ ire the data it deems relevant for the 
fulfilment of its task directly from the interested parties, customs agents, surveillance, transport and 
other companies and public or private sector bodies, which must provide this  information concerned 
within the time-limits granted, on pain of liability.   When the information requested by the inves tigating authority is not provided within the 
time-limits laid down in this Decree,  or when the investigation is seriously impeded, findings may be 
made on the basis of the available data.  If the inves tigating authority finds that  an interested party has 
supplied it with false or misleading information, it shall disregard such information and may use the 
data available.  
 Information received pursuant to the regula tions which follow may be used only for the 
purpose for which it was requested.   Article 16.   The Commission shall have a period of si x (6) months in which to conclude the 
investigation.  This period shall be calculated from the date of publication in the Official Journal 'El 
Peruano' of the investigating authority' s decision to initiate an investigation. 
 
 Provided that there are grounds for doing so in the opinion of the investigating authority, the period may be extended once only for a further two (2) months.    Article 17.   The decision to initiate an investiga tion, decisions establishing provisional and 
definitive safeguard measures, and decisions cancelling or modifying such measures or terminating or 
suspending the investigation, shall be published in 'El Peruano' once only. 
 
 CHAPTER III:  CONFIDENTIALITY 
 
 Article 18 .  Any confidential information submitted  by the parties in an investigation 
preceding the application of safeguard measures shall be  treated as such by the investigating authority, 
upon cause being shown, and shall not be revealed w ithout the final consent of the party by which it 
was submitted.   The investigating authority may invite th e parties which have supplied confidential 
information to provide non-confidential summaries ther eof or, if they state that the information in 
question cannot be summarized, to explain the reasons why this is impossible. 
 
 Article 19.   If the investigating authority decides that a request for confidentiality is not 
warranted and if the party which submitted the in formation is unwilling to make it public or to 
authorize its full or partial disclosure, in genera lized or summary form, the investigating authority 
shall reserve the right to disregard such inform ation, unless convincing evidence is shown, from a 
reliable source, that the information is accurate.   Interested parties which have made submissions  in the investigation and the representatives of 
the exporting countries may see all the information obtai ned in the context of the investigation apart 
from information of a confidential nature. 
 G/SG/N/1/PER/2/Suppl.2 
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  CHAPTER IV:  ANALYSIS OF INJURY 
 
 Article 20.   In the investigation to determine whet her increased imports of a specific product 
have caused or are threatening to  cause serious injury, account shall be taken of all factors of an 
objective and quantifiable nature having a bearing on the situation of the domestic industry affected, 
including the following in particular: 
 
(i) The rate and amount of the increase in imports  of the product, in absolute terms and in 
relation to domestic production and consumption; 
 
(ii) the share of the domestic market taken by increased imports; 
 (iii) the price of the imports, especially in order to determine whether there has been 
significant underpricing in relation to the ordinary price of the like or directly competitive domestic product; 
 
(iv) the impact on the domestic industry of the like or directly competitive products, as 
evidenced by changes in the economic factors identified in Article 8.7(a); 
 (v) other factors which, although not related to import trends, have a causal relationship 
with the injury or threat of injury to the domestic industry concerned. 
 
 Article 21.   When there is an alleged threat of serious injury, the investigating authority shall 
examine whether it is foreseeable th at the case may become one of serious injury, taking into account 
the data on the domestic industry iden tified in Article 8.7(b), in additi on to factors such as the rate and 
amount of the increase in exports to Peru, in absolute  and relative terms, the actual or potential export 
capacity of the countries of production or origin, and the likelihood that the exports resulting from that 
capacity are destined for the Peruvian market.   Article 22 .  The determination of serious injury or  threat thereof shall be based on objective 
evidence demonstrating a causal link between incr eased imports of the product under investigation 
and the alleged serious injury or threat thereof. 
 
 If factors other than increased imports are at th e same time causing serious injury or a threat 
of serious injury to the domestic industry concerned, such serious injury shall not be attributed to increased imports.    
 Article 23.   For the purposes of an affirmative or negative, preliminary or final determination 
of serious injury or threat thereof, the investiga ting authority shall draw up a technical report setting 
out all relevant factors of an objective and quantifia ble nature having a bearing on the determination, 
together with its assessment or estimate of the lik ely effects of a provisional or definitive measure, as 
the case may be.  
 Once it has arrived at an affirmative or negativ e determination of serious injury or threat 
thereof caused by increased imports, the investiga ting authority shall transmit copies of that 
determination, accompanied by the corresponding technical report, to the Intersectoral Commission and to the Ministry of Industry, Tourism, In tegration and Internati onal Trade Negotiations 
(MITINCI), for that body to make the corresponding notification to the WTO Committee on 
Safeguards. 
  Article 24.   The determination as to the existence or absence of serious injury or threat 
thereof shall contain:   G/SG/N/1/PER/2/Suppl.2 
 Page 17 
 
 
 1. A description of the product that is the subject of the determination. 
 2. A detailed analysis of the case under inv estigation, which may consist of a summary 
of the technical report of INDECOPI, excluding confidential information. 
 
3. The names of the firms which make up the domestic industry. 
 4. Considerations relating to the methodology used to determine the existence of serious 
injury or threat thereof. 
 
5. The factual and legal basis of the determination. 
 6. A reasoned statement concerning the relevance of the factors examined.  
 TITLE IV:  APPLICATION OF SAFEGUARD MEASURES 
  Article 25 .  Provisional and definitive safeguard measures shall be applied only in such 
amount and for such period of time as may be necessar y to prevent the threat of injury or remedy 
serious injury and to facilitate adjustment.   Article 26.   No safeguard measure may be applied to a product originating in a developing 
country Member of the WTO as long as that country 's share of Peruvian imports of the product in 
question does not exceed 3 per cent, provided that developing country Members of the WTO with less 
than 3 per cent share of Peruvian imports collec tively account for not more than 9 per cent of total 
imports of the product in question.  
 Article 27.   Safeguard measures shall preferably consist of the application of an ad valorem  
tariff; only where measures of this nature are in appropriate shall specific tariffs or quantitative 
restrictions be applied.   Article 28.   If a safeguard measure involves the a pplication of a quantitative restriction, 
through the establishment of a maximum import quota  or entitlement, such quota or entitlement shall 
on no account be lower than the average level of im ports of the product concerned over the last three 
calendar years preceding the year in which the inves tigation was initiated, unless clear cause is shown 
of the need to set a different level in order to remedy  or prevent serious injury or the threat thereof, as 
the case may be.  
 The above-mentioned quotas shall be allocated among supplying countries in accordance with 
the provisions of Article 5.2 of the Agreement on Safeguards.  
 CHAPTER I:  PROVISIONAL SAFEGUARD MEASURES 
 
 Article 29.   In cases where the applicant alleges th e existence of critical circumstances, a 
provisional safeguard measure may be applied.  The investigating authority shall draw up a 
preliminary technical report, which shall contain a ll relevant factors of an objective and quantifiable 
nature which may serve to evaluate the relevance of the application of the measure and its possible 
impact on the domestic market.  The preliminary report shall be based on the existence of clear 
evidence that the increased imports have caused  or threaten to cause serious injury. 
 
 The investigating authority shall submit the preliminary technical report within a minimum of fifteen (15) days and a maximum of two (2) months  from the day following the date of publication of 
the decision to initiate an investigation.  G/SG/N/1/PER/2/Suppl.2 
Page 18  
 
  Article 30.   The decision as to the adoption of provisional measures shall be taken by the 
Multisectoral Commission on the basis of the prel iminary technical report prepared by the 
investigating authority.  Once the decision has been taken and before the adoption of the measure, the 
Multisectoral Commission shall communicate its inten tion to proceed with adoption of the measure to 
MITINCI, which shall make the necessary notific ation to the WTO Committee on Safeguards.  
Immediately after the measure has been taken, the consultations referred to in Article 12.4 of the 
WTO Agreement on Safeguards shall be initiated.   Article 31 .  The text providing for adoption of a pr ovisional safeguard measure shall contain: 
 
1. A determination as to the increase in imports, in absolute and relative terms. 
 2. A description of the product to which the measure applies.  3. A list of the producers that constitute the domestic industry. 
 
 4. A preliminary determination as to the ex istence of clear evid ence that the increased 
imports are the cause of serious injury or threat thereof, including an account of the economic factors analysed for the purpose of the determination. 
 5. The level of the provisional safeguard measure, i.e. the amount of the tariff increase. 
 
6. The planned duration of the provisional measure.  
 In the event that it is decide d not to adopt a provisional me asure, the corresponding decision 
shall contain the factual and legal grounds on whic h the Multisectoral Commission based its decision. 
 
Article 32.   Provisional safeguard measures shall ha ve a maximum duration of 200 days and 
may be suspended before the date of their expi ration by decision of the Multisectoral Commission. 
 
When a decision is taken to adopt a definitive safeguard measure, the period of application of 
any provisional measure shall be calculated as part of the total period of duration of the measure. 
 
Article 33 .  Provisional safeguard measures shall be a pplied only in the form of an increase in 
tariffs calculated ad valorem . 
 
The body responsible for the assessment, guarantee and implementation of safeguard 
measures shall be the National Customs Administration (ADUANAS).   
 Article 34.   The amount of a provisional safeguard measure shall be paid or guaranteed for 
payment by the importer, by lodging a security payable to the National Customs Administration (ADUANAS).  
When the amount of a definitive safeguard me asure is higher than that of a provisional 
safeguard measure that has been paid or guarant eed, the excess shall not be payable.  Conversely, 
provisional duties collected in an amount higher than that fixed for a definitive measure shall be refunded. 
 
 In the event that no definitive safeguard measu re is established, reimbursement of the full 
amount paid shall be ordered promptly, or the secu rity given for the amount of the provisional duties 
imposed shall be refunded or released.   G/SG/N/1/PER/2/Suppl.2 
 Page 19 
 
 
  CHAPTER II:  DEFINITIVE SAFEGUARD MEASURES 
 
 Article 35.   In order to arrive at an affirmativ e determination concerning the imposition of 
definitive safeguard measures, the investigatin g authority shall submit to the Multisectoral 
Commission the corresponding technical report on th e serious injury caused or threatened by the 
increased imports, so that the latter may decide whet her or not it is appropriate to apply safeguard 
measures and the amount of such measures.     The Multisectoral Commission shall assess the general economic interest of the country, 
including the effects of the imposition of such meas ures both at national level and in regard to trade 
relations with countries possibly affected, particular ly in cases where application of the safeguard has 
the effect of exceeding the tariff level bound by Peru in the WTO.   Once the decision to take a definitive measure has been adopted, the Ministry of Industry, 
Tourism, Integration and International Trade Ne gotiations shall make the corresponding notification 
to the WTO Committee on Safeguards. 
  Article 36.   The text whereby the Multisectoral Commission adopts a definitive safeguard 
measure shall contain:  
1. A determination as to the increase in imports, in absolute or relative terms. 
 
2. A description of the product to which the measure applies.  3. A list of the producers comprising the domestic industry.  
4. A final determination as to the existence of clear evidence that the increased imports 
have caused serious injury or threat thereo f, including an explanatory account of the 
economic factors analysed for the purpose of such a determination. 
 5. The level of the definitive safeguard measure, i.e. the amount of the tariff increase.  
6. The planned duration of  the definitive measure. 
 7. The adjustment plan submitted by the applicant firms.  8. The timetable for progressive liberalization of the measure, in the case of measures of 
a total duration of over one year, including any period of provisional application. 
 9. An assessment as to the appropriateness of  the measure in relation to the public 
interest. 
  The aforementioned decision shall be based on the technical report of the investigating 
authority concerning the determination as to the existe nce of serious injury or threat thereof caused by 
the increase in imports.   If it is decided not to adopt a definitive me asure, the corresponding text shall contain the 
factual and legal grounds on which the Multisectoral Commission based its decision and shall be 
published in the Official Journal 'El Peruano'. 
 G/SG/N/1/PER/2/Suppl.2 
Page 20  
 
  CHAPTER III:  CONSULTATIONS 
 
 Article 37.   Before imposing or extending a definitive safeguard measure, the Peruvian 
Government shall provide adequate opportunity fo r consultations to be held with WTO Members 
which have a substantial interest as exporters of the particular product concerned.  The purpose of 
such consultations shall be, inter alia , to examine the information su pplied in notifications to the 
Committee on Safeguards, to exchange views on th e measure and to reach an understanding on how 
to achieve the objective of maintaining the level of  Peru's concessions and ot her obligations under the 
GATT 1994.  
 The Government of Peru shall immediately notif y the results of the consultations to the WTO 
Council for Trade in Goods, including any compensation granted, where applicable. 
  Article 38.   When applying safeguard measures or extending their duration, the Government 
of Peru shall endeavour to maintain a level of  concessions and other obl igations substantially 
equivalent to that existing under the GATT 1994 between Peru and the exporting Members which 
would be affected by such measures.  1. For the purposes of this Article, agreements may be made, through the consultations referred 
to in the previous Article, regarding any adequate means of trade compensation for the adverse effects 
of the safeguard measures on trade. 
 
2. When taking a decision to introduce a safeguard measure, the Peruvian Government shall also 
consider the fact that, in cases where no agreement is reached concerning adequate compensation, the 
interested governments may, under the terms of  the Agreement on Safeguards of the GATT 1994, 
suspend substantially equivalent concessions, as long as such suspension is not disapproved of by the 
WTO Council for Trade in Goods. 
 3. The right to suspend equivalent  concessions shall not be exercised for the first three years that 
a safeguard measure is in effect, provided that it h as been adopted as a result of  an absolute increase 
in imports. 
 
 CHAPTER IV:  DURATION OF SAFEGUARD MEASURES  
 Article 39.  The duration of safeguard measures shall not exceed three years, unless they are 
extended in accordance with the provisions of Article 44 et seq. of these regulations. 
 
 Article 40 .  The total duration of a safeguard measure , including the period of application of 
any provisional measure, the period of initial appli cation and any extension thereof, shall not exceed 
six years.  Article 41.   Safeguard measures for which the period of application is more than one year 
shall be liberalized progressively, at regular in tervals, during the period of application.   
  CHAPTER V:  MONITORING AND REVOCATION OF SAFEGUARD MEASURES  
 Article 42 .  The Ministry of the sector concerned, in coordination with the investigating 
authority, shall monitor the situation of the affect ed industry during the period of application of the 
safeguard measure and may propose to the Multisect oral Commission, on the basis of a well-founded 
determination, that the measure be revoked if it is established that the efforts to bring about the 
desired adjustment and changes in the circumstances which originally gave rise to the application of 
the measure are insufficient or inadequate.   G/SG/N/1/PER/2/Suppl.2 
 Page 21 
 
 
  CHAPTER VI:  EXTENSION OF SAFEGUARD MEASURES 
 
 Article 43.   A safeguard measure may be extended ex officio at the request of the 
Multisectoral Commission or on the application of a party no less than two (2) months before expiry 
of the period prescribed for the initial measure.  To  that end, the procedure provided for the adoption 
of the original measure shall be followed. 
  Article 44.   Safeguard measures may be extended once only, for a period no longer than three 
years.  
 Article 45.   In order for a safeguard measure to be extended, the Multisectoral Commission 
shall base its decision on the investigating aut hority's technical report and on the finding that 
application of the measure continues to be necessar y to prevent or remedy serious injury and that 
there is evidence that the industry is undergoing a pr ocess of adjustment, and shall satisfy itself that  
the provisions of the WTO Agreement relating to co nsultations and notifications are duly observed. 
 
 Article 46.   Measures which are extended shall not be more restrictive than those in force at 
the end of the initial period, and the gradual liberal ization considered appropriate in relation to the 
adjustment plan shall be continue d during the period of extension. 
 
 CHAPTER VII:  RENEWED APPLICATION OF A SAFEGUARD MEASURE 
 
 Article 47 .  No new measure may be applied to the same product before two years have 
elapsed since the end of the duration of a safeguard measure.   If a safeguard measure has been applied for a period of over four years, the prohibition 
contained in the previous paragraph shall apply afte r a period equal to half the period of its duration 
has elapsed.   Article 48 .  Notwithstanding the provisions of the preceding Article, safeguard measures of a 
duration not exceeding 180 days may be applied again to imports of the same product in cases where:  
 1. At least one year has elapsed since the date of introduction of a safeguard measure on 
the import of the product concerned;  
  2. such a measure has not been applied on the same product more than twice in the five-
year period immediately preceding the date of introduction of the safeguard measure. 
 
 TRANSITIONAL PROVISIONS 
 
1. The transitional safeguard established in Ar ticle 6 of the WTO Agreement on Textiles and 
Clothing (ATC) shall be applicable to all products covered by that Agreement which have not been 
integrated into the general regime (GATT 1994) in accordance with Article 2 of the ATC, in the light 
of the procedures established in this Decree. 
 2. Transitional safeguards may be adopted by th e Commission when the investigating authority 
recommends their application and determines that th e product in question has been imported in such 
increased quantities as to cause serious damage, or act ual threat thereof, to the domestic industry 
producing like or directly competitive products. 
 3. The investigating authority shall not reco mmend the application of transitional safeguards 
unless it is demonstrated that the serious damage or  actual threat thereof is caused by the increased G/SG/N/1/PER/2/Suppl.2 
Page 22  
 
 quantities in total imports of the product in question,  and not by such other factors as technological 
changes or changes in consumer preference.   In order to determine the serious damage or act ual threat thereof, the investigating authority 
shall examine the effect of the imports on the aff ected domestic industry, as reflected in changes in 
such relevant economic variables as output, productivit y, utilization of installed capacity, inventories, 
market share, exports, wages, levels  of employment, domes tic prices, profits and investment.  None of 
these factors, either alone or combined with other factors, can give decisive guidance. 
 4. Applications for the introduction of trans itional safeguard measures shall be submitted in 
writing to the investigating authority, accompanied by sufficient evidence and information to give an 
indication of the increase in imports, the serious dama ge or actual threat thereof, and the causal link 
between the two.   For the purposes of the transitional safeguard, the provisions of Title III of this Supreme 
Decree shall apply, in the light of Article 6 of the WTO Agreement on Textiles and Clothing. 
 5. If the investigating authority concludes that application of a transitional safeguard should be 
recommended, it shall submit the corresponding repor t to the Commission for the latter to decide 
whether or not such application is appropriate.  
 If the Commission decides to apply the measure,  it shall require the competent authorities to 
request consultations with the government or gove rnments of the countries that would possibly be 
affected by the measure, in accordan ce with the procedure provided fo r in Articles 6.7, 6.8, 6.9 and 
6.10 of the ATC.  
 Once the consultation process has been concluded, the Commission's decision shall be given 
official form in a ministerial resolution of the Ministry of Industry, Tourism, Integration and 
International Trade Negotiations.  If it is decided not  to apply the measure, the Commission shall set 
out that agreement in an appropriate legal text.  6. The transitional safeguard provided for in this  text shall be applied on a country-by-country 
basis.  To that end, the investigating authority shall determine the country or countries to which the 
serious damage or actual threat thereof to the domest ic industry is to be attributed, on the basis of a 
sharp and substantial increase in imports, actual or imminent, from each country individually, and on 
the basis of the level of imports as compared with imports from other sources, market share, and import and domestic prices at a comparable stage of  commercial transaction.  In accordance with the 
provisions of Article 6.4 of the ATC, none of these factors, either alone or combined with other 
factors, can necessarily give decisive guidance. 
 The imminent increase in imports referred to  in the preceding paragraph shall be measurable 
and shall not be determined on the basis of allega tion, conjecture or remote possibility resulting, for 
example, from the production capacity existing in the exporting countries. 
7. The transitional safeguard shall consist of a qua ntitative restriction, and shall remain in force 
no longer than three years, without possibility of extens ion, or until the product is integrated into the 
GATT 1994, whichever comes first.    8. The level of restraint imposed through the a pplication of a transitiona l safeguard shall under 
no circumstances be lower than the actual level of imports from the country concerned during the 
12-month period terminating two months preceding th e month in which the request for consultations 
referred to in Transitional Provision 5 was made.   G/SG/N/1/PER/2/Suppl.2 
 Page 23 
 
 
  Should the restraint remain in force for a pe riod exceeding one year, the level for subsequent 
years shall be the level specified for the first year  increased by not less than six per cent per annum;  
carry forward and carryover may also be applie d in accordance with the rules laid down in 
Articles 6.13 and 6.14 of the ATC.  
9. For the purpose of applying transitional safegua rd measures, consideration shall be given to 
the interests of the exporting countries, in accordan ce with the terms of the Agreement on Textiles and 
Clothing.  10. In unusual and critical circumstances, wh ere delay would cause damage which would be 
difficult to repair, provisional measures may be adopted on the condition that the request for 
consultations and notification to the WTO Textiles M onitoring Body shall be effected within no more 
than five (5) days from the day following publication of the measure.    11. These transitional provisions shall be applicable until 31 December of the year 2004.   
 
 FINAL PROVISIONS 
 
1. The procedure established in this Supreme Decr ee shall also apply to applications for the 
imposition of safeguard measures against imports  from countries which are not WTO Members.  
However, the second paragraph of Article 3 and Articles 26, 37, 38, 41 and 48 of these regulations 
shall not apply to those countries. 
  Safeguards applied against WTO non-Member countries shall be adopted on a country-by-
country basis.    
2. The Ministry of Industry, Tourism, Inte gration and International Trade Negotiations, 
ex officio or at the request of the Commission, may adopt  follow-up measures in respect of imports of 
certain products, in order to monitor trends in such  imports.  Such measures shall consist in observing 
and keeping track of import indicators, in absolute  terms or in relation to  domestic production, as well 
as trends, within the industry concerned, in indices of employment, production, utilization of installed 
capacity, profitability and market share, among others. 
 
3. The negotiations which take place during cons ultations held with WTO Member countries on 
the basis of undertakings provided for in the WTO Agreements on Safeguards and on Textiles and 
Clothing shall be under the responsibility of MITINCI and the investigating authority. 
 
4. This Decree shall be endorsed by the Chairman of the Council of Ministers and by the 
Ministers of the Economy and Finance and of Industr y, Tourism, Integration and International Trade 
Negotiations.   Done at Government House, Lima, on the eight eenth day of the month of December of the 
year one thousand nine hundred and ninety-eight. 
 
ALBERTO FUJIMORI FUJIMORI 
Constitutional President of the Republic 
 
ALBERTO PANDOLFI ARBULU Chairman of the Council of Ministers 
 
JORGE BACA CAMPODONICO 
Minister of the Economy and Finance 
 G/SG/N/1/PER/2/Suppl.2 
Page 24  
 
 GUSTAVO CAILLAUX ZAZZALI 
Minister of Industry, Tourism, Integration 
and International Trade Negotiations 
 
 
__________