WORLD TRADE
ORGANIZATIONG/SG/N/1/PAK/2
1 October 2003
(03-5164)
Committee on Safeguards Original:  English
NOTIFICATION OF LAWS, REGULATIONS AND ADMINISTRATIVE
PROCEDURES RELATING TO SAFEGUARD MEASURES
PAKISTAN
The following communication, dated 25 September 2003, has been received from the
Permanent Mission of Pakistan.
_______________
AN
ORDINANCE
to provide for the imposition of safeguard measures
WHEREAS it is expedient to give effect in Pakistan to the provisions of Article XIX of the
General Agreement on Tariffs and Trade, 1994, and to the Agreement on Safeguards to provide for
the imposition of safeguard measures in accordance therewith, to provide a framework for
investigation and determination of serious injury or threat of serious injury caused by products
imported into Pakistan and for matters ancillary thereto or connected therewith;
AND WHEREAS the President is satisfied that circumstances exist which render it necessary
to take immediate action;
NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day
of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the ProvisionalConstitution Order No. 9 of 1999, and in exercise of all powers enabling him in that behalf, the
President of the Islamic Republic of Pakistan is pleased to make and promulgate the following
Ordinance: -
PART I
PRELIMINARY
1. Short title, extent and commencement . – (1) This Ordinance may be called the Safeguard
Measures Ordinance, 2002.
(2) It extends to the whole of Pakistan.(3) It shall come into force at once.
2. Definitions .- In this Ordinance, unless there is anything repugnant in the subject or context,-G/SG/N/1/PAK/2
Page 2
(a) “Agreement on Safeguards” means the Agreement on Safeguards included in Annex (1A) to
the Final Act of the Results of the Uruguay Round concerning the Implementation of
Article XIX of the General Agreement on Tariffs and Trade, 1994;
(b) “Commission” means the National Tariff Commission established under the National Tariff
Commission Act, 1990 (VI of 1990);
(c) “Committee” means the Committee on Safeguards of the WTO established pursuant to
Article 13 of the Agreement on Safeguards;
(d) “country” means any country or territory whether a Member or not and includes a customs
union or separate customs territory;
 (e) “developing country” means a country categorized as such by the WTO;(f) “domestic industry” means the producers as a whole of products which are like or directly
competitive with the in vestigated product, operating within Pakistan or those producers
operating within Pakistan whose collective output of like or directly competitive products
constitutes a major proportion of the total production of such products in Pakistan;
(g) “interested party” includes-
(i) the exporter or foreign producer of an investigated product;
(ii) the importer of an investigated product;(iii) trade or business associations a majority of the members of which are  producers,
exporters or importers of an investigated product;
(iv) the producer of a domestic like or directly competitive product in Pakistan;(v) trade or business associations a majority of the members of which produce a domestic
like or directly competitive product in Pakistan;  and
(vi) such other person or group of persons as the Commission may from time to time
notify in the official Gazette;
(h) “investigated product” means an imported product subject to an investigation, as described in
the public notice of initiation of an investigation referred to in clause (b) of sub-section (1) ofsection 10;
(i) “investigation” means an investigation conducted under this Ordinance;(j) “like product” means a product which is alike in all respects to an investigated product or, in
the absence of such a product, another  product which, although not  alike in all respects, has
characteristics closely resembling those of the investigated product;
(k) “Member” means a country which is a member of the WTO;
(l) “participating interested parties” means those interested parties that have indicated their
interest in participating in an investigation, to the Commission under section 11;
(m) “prescribed” means prescribed by rules made under this Ordinance.G/SG/N/1/PAK/2
Page 3
(n) “public notice” means a notice published in the official Gazette;
(o) “quota” means import quotas including tariff rate quotas;
(p) “serious injury” means a significant overall impairment in the position of a domestic industry
caused by increased imports, absolute or relative to domestic production,  of an investigated
product;
(q) “threat of serious injury” means  serious injury that is clearly imminent;  and(r) “WTO” means the World Trade Organization established pursuant to the Marrakesh
Agreement concluded in Marrakesh, Morocco, on 15 April,  1994.
PART II
SAFEGUARD MEASURES
3. Application of safeguard measures. - The Federal Government may, by notification in the
official Gazette, apply a safeguard measure on an investigated product imported into Pakistan if, it has
been determined by the Commission pursuant to an investigation conducted by it in accordance withthe provisions of this Ordinance that as a result of unforeseen developments and of the effect of WTO
obligations assumed by Pakistan, the investigated  product is being imported in such increased
quantities, absolute or relative to domestic production, and under such conditions as to cause serious
injury or threat of serious injury to domestic industry producing like or directly competitive products.
PART III
SERIOUS INJURY OR THREAT OF SERIOUS INJURY AND CAUSATION
4. Serious injury. – A determination of serious injury or threat of serious injury shall be based
upon an evaluation, by the Commission, of all relevant factors of an objective and quantifiable naturehaving a bearing on the situation of domestic industry including, but not limited to, the following,
namely:-
(i) The rate and amount of an increase in imports of an investigated product, in absolute
terms and relative to domestic production of like or directly competitive products;
(ii) the share of domestic market taken by increased imports of an investigated product;(iii) the impact of increased imports of an investigated product on domestic industry, as
evidenced by relevant indicators including, but not limited to, production,productivity, capacity utilisation, sales, market share, profits and losses, and
employment;  and
(iv) factors other than increased imports of an investigated product which at the same time
are causing serious injury or threat of serious injury.
5.  Threat of serious injury  . – (1)   In determining threat of serious injury, the Commission
shall, in addition to the factors specified in section 4, evaluate the following, namely:-G/SG/N/1/PAK/2
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(i) The actual and potential export capacity of the country of production or origin of an
investigated product;
(ii) any build-up of inventories of an investigated product in Pakistan and in the country
of exportation;
(iii) the probability that imports of an investigated product shall enter domestic market in
increasing quantities; and
(iv) any other factors deemed relevant by the Commission.
6.  Factors other than increased imports . - When serious injury or threat of serious injury is
being caused by factors other than increased imports of an investigated product, such injury shall not
be attributed to the increased imports -
PART IV
INVESTIGATION
7. Initiation of investigation.  – (1) An investigation to determine serious injury or threat of
serious injury may be initiated by the Commission -
(a) upon receipt by the Commission of a written application for initiation of an investigation by
or on behalf of  domestic industry; or
(b)   suo moto  by the Commission where it is satisfied that there is sufficient evidence to justify the
initiation of an investigation.
(2) The application referred to in clause (a) of sub-section (1) shall-
(i) be submitted to the Commission in such manner, number and form and with such fee
as may be prescribed; and
(ii) include such information as may be prescribed.
8. Withdrawal of application before initiation .- An application received by the Commission
pursuant to clause (a) of sub-section (1) of sect ion 7 may be withdrawn prior to initiation of an
investigation by the Commission in which case it shall be considered not to have been made:
Provided that upon such withdrawal of an applic ation any fee paid along with the application
pursuant to clause (i) of sub-section (2) of section 7 shall stand forfeited in favour of the Commission.
9. Initiation of investigation .– (1)  The Commission shall examine the accuracy and adequacy
of the evidence given in an application received pursuant to clause (a) of sub-section (1) of section 7
in order to determine whether it is compliant with the requirements of sub-section (2) of section 7 and,
if so, whether there is sufficient evidence to justify initiation of an investigation.
(2) An application received by the Commission pursuant to clause (a) of sub-section (1)
of section 7 shall be rejected if the Commission is satisfied that there is not sufficient evidence of
serious injury or threat of serious injury to justify initiation of an investigation.G/SG/N/1/PAK/2
Page 5
(3) The Commission may seek additional information from an applicant submitting an
application pursuant to clause (a) of sub-section (1) of section 7, before deciding whether to initiate an
investigation and such information shall be provided  by the applicant to the Commission within  such
time and in such manner as the Commission may direct.
(4)  When the Commission is satisfied that there is sufficient evidence of serious injury or
threat of serious injury to justify the initiation of  an investigation, it shall initiate an investigation.
(5) Where the Commission does not consider it appropriate to initiate an investigation, it
shall notify its decision by a public notice of non-initiation of an investigation and such notice shall
contain such information as may be prescribed:
Provided that the Commission may, if it deems fit, only publish a summary of the public
notice of non-initiation of an investigation in the of ficial Gazette provided that a full text of such
notice is promptly placed in the public file to be maintained by it pursuant to section 15.
(6) The Commission shall decide whether or not to initiate an investigation within such
time period as may be prescribed:
Provided that different time periods may be prescribed for this purpose depending on the
complexity of the issues involved.
10. Notice of initiation of investigation.  -  (1)  Where the Commission has decided to initiate an
investigation it shall -
(a) immediately notify the Federal Government of its decision and the Federal Government shall
immediately notify the Committee of such decision in  accordance with any requirementsestablished by the Committee therefor;  and
(b) notify its decision by means of a public notice of initiation of an   investigation.
(2) The public notice of initiation of an investigation referred to in clause (b) of sub-
section (1) shall be in such form and contain such information as may be prescribed and the initiation
of an investigation shall be effective on the date on which such notice is published in the officialGazette:
Provided that the Commission may, if it deems fit, only publish a summary of the public
notice of initiation of an investigation referred to in clause (b) of sub-section (1) in the official Gazette
provided that a full text of such notice is promptly  placed in the public file to be maintained by it
pursuant to section 15.
(3)  The Commission shall promptly provide a copy of the full text of public notice of
initiation of an investigation referred to in clause (b) of sub-section (1) to the Federal Government.
11. Participation of interested parties.  - (1) Any interested party desiring to participate in an
investigation shall have a period of fifteen days from the date of initiation of the investigation to
indicate to the Commission, in writing, of its interest in participating in the investigation:
Provided  that the Commission may, at its discretion, allow any interested party to indicate its
interest in participating in an investigation  after the expiry of the fifteen day time period, upon good
cause shown.G/SG/N/1/PAK/2
Page 6
(2) Subject to the requirement to protect confidential information pursuant to section 14
and upon payment to the Commission of the prescribed fee, the Commission shall, after initiation of
an investigation, provide any interested party on application the full text of the application received by
the Commission pursuant to clause (a) of sub-section (1) of section 7.
12. Schedule  for investigation. – (1) The Commission shall complete an investigation within
four months from the date of its initiation:
Provided that the Commission may extend such four months period where it deems it
necessary for a further period not exceeding two months.
(2) Where the application of a provisional measure is to be considered by the
Commission, it shall reach its provisional determination no later than forty-five days, from the date of
initiation of an investigation:
Provided that the Commission may extend such forty-five days period, where it deems it
necessary, for a further period not exceeding  fifteen days.
13. Conduct of investigation.  – (1) The Commission may seek from an applicant submitting an
application pursuant to clause (a) of sub-section (1) of section 7 or any or all of the participating
interested parties, customs agents, inspection compan ies, forwarders, or any other enterprise or entity
of the public or private sector, such data or information as it considers relevant or necessary forperformance of its functions under this Ordinance and such data or information shall be provided to
the Commission within such time period and in  such manner as the Commission may direct.
(2) The Commission may conduct on-the-spot investigations to verify or obtain further
details concerning the information provided:
Provided that where such investigations are conducted, the Commission shall prepare a report
describing the findings of the verification and, subject to the requirement to protect confidential
information pursuant to section 14, a copy of such report shall be promptly placed in the public file to
be maintained by it pursuant to section 15.
14. Confidentiality. – (1)  Subject to sub-section (2), the Commission shall, during and after an
investigation, keep confidential any informati on submitted to it and such information shall not be
disclosed without specific permission of the party submitting it.
(2) Information which is -
(a) by nature confidential, because its disclosure shall be of significant competitive advantage to
a competitor, or because its disclosure would have a significantly adverse effect upon a
person supplying the information, or upon a person from whom the information was acquired;
(b) determined by the Commission to be of a confidential nature for any other reason;  or(c)  provided on a confidential basis by parties to an investigation,shall, upon good cause shown, be treated as confidential by the Commission.
(3) The following types of information shall be deemed to be by nature confidential,
unless the Commission determines that disclosure in a particular case would neither be of significant
competitive advantage to a competitor nor have a significantly adverse effect upon a person supplying
the information or upon a person from whom such information was acquired, namely:-G/SG/N/1/PAK/2
Page 7
(a) business or trade secrets concerning the nature of a product, production processes, operations,
production equipment, or machinery;
(b) information concerning the financial condition of a company which is not publicly available;
and
(c) information concerning  costs, identification of customers, sales, inventories, shipments, or
amount or source of any income, profit, loss or expenditure related to manufacture and sale of
a product.
(4)  Any party seeking any information to be kept confidential shall request for the same
at the time the information is submitted, along with the reasons warranting confidentiality.  The
Commission shall consider such requests expeditiously and inform the party submitting the
information if it determines that the request for k eeping the information confidential is not warranted.
(5) Any party submitting any information with the request to keep it confidential shall
furnish non-confidential summary of all such information. Such summary may take the form of ranges
or indexation of figures provided in the confidential version or marked deletions in text or in such
other form as the Commission may require:
Provided that such non-confidential summary shall permit a reasonable understanding of the
substance of the information submitted in confidence:
Provided further that any deletion in text shall, unless otherwise allowed by the Commission,
only relate to names of the buyer or supplier.
(6) In exceptional circumstances, any part y submitting confidential information may
indicate that much information is not susceptible of summary, in which case a statement of the
reasons why summarisation is not possible shall be provided. If the Commission concludes that the
non-confidential summary provided fails to satisfy the requirements of sub-section (5), it may
determine that the request for keeping the information confidential is not warranted.
(7) If the Commission finds that a request for keeping the information confidential is not
warranted, and if the supplier of such information is unwilling to make the information public or to
authorise the disclosure in generalised or summary form, the Commission shall disregard such
information and return the same to the party submitting it.
(8) Notwithstanding anything contained in this Ordinance or in any other law for the time
being in force, any confidential information received or obtained, directly or indirectly, by the
Commission pursuant to or in connection with an investigation shall not be subject to disclosure by
the Commission to any Ministry, Division, depart ment, agency or instrumentality of the Federal
Government or a Provincial Government without the prior permission of the party submitting such
confidential information.
15. Information to participating interested parties. –  (1)  The  Commission shall establish and
maintain a public file  relating to each investigation or review pursuant to this Ordinance and such file
shall contain such information as may be prescribed.
(2)  The public file  to be maintained under sub-section (1)  shall be available to any
participating interested party for examination and,  upon payment of the prescribed fee to the
Commission for copying, at the offices  of the Commission during such time as the Commission may
notify, throughout the course of an investigation or review under this Ordinance.G/SG/N/1/PAK/2
Page 8
16.  Written arguments and hearings. – (1) During  an investigation any participating interested
party may submit written arguments to the Commission in such form and manner and within such
time period as may be prescribed:
(2) During an investigation the Commission may hold a hearing at which participating
interested parties may present information and arguments orally, in accordance with such provisions
as may be prescribed :
Provided that such information and arguments shall be only taken into consideration by the
Commission if the same are confirmed in writing to the Commission.
17. Reliance on information available. –  If, at any time during an investigation, any interested
party -
(a) refuses access to, or otherwise does not provide, necessary information within the period of
time as may be prescribed;  or
(b) otherwise significantly impedes the investigation,the Commission may make determinations under this Ordinance on the basis of the available
information.
PART V
APPLICATION OF PROVISIONAL SAFEGUARD DUTY
18. Application of  provisional safeguard duty. – (1) Subject to the provisions of this
Ordinance, the Federal Government may, by notification in the official Gazette, impose a provisional
safeguard duty on an investigated product where the Commission determines that -
(a) there are critical circumstances such that delay in taking action would cause damage which
would be difficult to repair; and
(b) there is clear evidence of serious injury or threat of serious injury.
(2)  A provisional safeguard duty shall -
(a) take the form of  duty on an investigated product not exceeding the amount which the
Commission considers adequate to prevent the occurrence of or facilitate recovery from
serious injury or threat of serious injury, as recommended by the Commission pursuant to
clause (a) of sub-section (3) of section 19;
(b) be imposed in addition to any other duties levied on an investigated product under any other
law for the time being in force; and
(c) be collected in the same manner as customs-duty under the Customs Act, 1969 (IV of 1969) .
(3) A provisional safeguard duty shall be applied for a period not exceeding two hundred
days and may be suspended before its date of expiration if so determined by the Federal Government.G/SG/N/1/PAK/2
Page 9
19. Report of provisional determination . – (1) Immediately upon reaching a determination of
the factors set forth in clauses (a) and (b) of sub-section (1) of section 18, the Commission shall
prepare a report of provisional determination containing a detailed analysis of the information
obtained in an investigation and setting forth the Commission’s findings and reasoned conclusions on
the existence of the factors set forth in clauses (a) and (b) of section 17.
(2) The Commission shall submit the report of provisional determination referred to in
sub-section (1) to the Federal Government for its consideration.
(3) Where the Commission has reached an affirmative determination of the existence of
the factors set forth in clauses (a) and (b) of sub-section (1) of section 18, the report of provisional
determination referred to in sub-section (1) shall also include the Commission’s recommendationregarding -
(a) the amount of provisional safeguard duty the Commission considers adequate to prevent
occurrence of or facilitate recovery from serious injury or threat of serious injury; and
(b) subject to the provisions of section 17, the duration of levy of the provisional safeguard duty.
20. Notice of non-application of provisional safeguard duty.  – (1) Where the Commission
reaches a negative determination of the existence of the factors set forth in clauses (a) and (b) of sub-
section (1) of section 18,  it shall notify its decision by means of a public notice of non-application ofprovisional safeguard duty and such notice shall contain such information as may be prescribed:
Provided that the Commission may, if it deems fit, only publish a summary of the public
notice of non-application of a provisional safeguard measure in the official Gazette provided that a
full text of such notice is promptly placed in the public file to be maintained pursuant to section 15.
(2) The Commission shall promptly provide a copy  of the full text of the notice of non-
application of provisional safeguard duty referred to in sub-section (1) to the Federal Government.
21. Decision to apply provisional safeguard duty by the Federal Government. – (1) Where
the report of provisional determination received by the Federal Government pursuant to section 19
contains an affirmative determination of the existence of the factors set forth in clauses (a) and (b) ofsub-section (1) of section 18,  the Federal Government shall, no later than fifteen days after the receipt
of such report from the Commission, take a decision, affirmative or negative, regarding the imposition
of provisional safeguard duty on an investigated product, taking into account the recommendations of
the Commission  set forth in the report of provisional determination.
(2) Immediately upon taking an affirmative decision regarding imposition of a
provisional safeguard duty,  the Federal Government shall notify its decision by means of a public
notice of application of a provisional safeguard duty :
Provided that the Federal Government may, if it deems fit, only publish a summary of the
public notice of application of a provisional safeguard measure in the official Gazette provided that a
full text of such notice shall be promptly placed in the public file to be maintained pursuant to
section 15.
(3) The public notice of application of a provisional safeguard measure referred to in sub-
section (1) shall contain such information as may be prescribed and a copy of the full text thereof
shall be provided by the Federal Government to the Commission.G/SG/N/1/PAK/2
Page 10
22. Notification and consultations. – (1) Immediately upon receipt of the Commission’s report
pursuant to section  19, the Federal Government shall notify the Committee of the recommendation in
conformity with any requirements established by the Committee therefor.
(2)  The Federal Government shall immediately engage in consultations, upon a request
from any Member having a substantial interest as an exporter of an investigated product subject to the
provisional safeguard duty, in accordance with the requirements of the Agreement on Safeguards.
PART VI
APPLICATION OF DEFINITIVE SAFEGUARD MEASURES AND DETERMINATION
REGARDING SERIOUS INJURY OR THREAT THEREOF
23. General principles governing application of definitive safeguard measure.-  (1) Subject to
the provisions of this Ordinance, the Federal Government may, by notification in the official Gazette,
impose a definitive safeguard measure where the Commission makes a final affirmative determinationof the existence of serious injury or threat of serious injury.
(2) The duration and level of any such measure shall be no more than is necessary to
prevent or remedy serious injury and to facilitate adjustment.
24.  Determination of serious injury or threat thereof. – (1) The Commission shall determine
the existence of serious injury or threat of seri ous injury, in conformity with the provisions of
sections 4 and 5 and on the basis of objective evidence obtained in an investigation.
(2) Immediately upon reaching its determination, whether affirmative or negative, as to
the existence of serious injury or threat of serious injury pursuant to sub-section (1), the Commission
shall prepare a report of its final determination containing a detailed analysis of the information
obtained in an investigation and setting forth the Commission’s findings and reasoned conclusions on
all pertinent issues of fact and law including a demonstration of the relevance of the factors examined
by the Commission.
(3) The Commission shall submit the report of its final determination referred to in sub-
section (2) to the Federal Government for its consideration.
(4) Where the Commission has reached an affirmative final determination of serious
injury or threat of serious injury pursuant to sub-section (1), the Federal Government shall,
immediately upon receipt of the report of final determination from the Commission, notify theCommittee of such affirmative final determination in conformity with any requirements established
by the Committee therefor.
(5) Where the Commission has reached an affirmative final determination of serious
injury or threat of serious injury, its report of final determination referred to in sub-section (2) shallalso include the Commission’s recommendation regarding the form, level and duration of a definitive
safeguard measure:
Provided that where the Commission recommends that a definitive safeguard measure take
the form of a quota on import of an investigated product, such recommendation shall be consistentwith the provisions of section 30
(6) Where the Commission has reached a negative final determination of serious injury
or threat of serious injury pursuant to sub-section (1), it shall notify its decision by means of a publicG/SG/N/1/PAK/2
Page 11
notice of negative final determination and such notice shall include such information as may be
prescribed:
Provided that the Commission may, if it deems fit, only publish a summary of the public
notice of negative final determination in the official Gazette provided that a full text of such noticeshall be promptly placed in the public file to be maintained pursuant to section 15.
(7)  The Commission shall promptly provide a copy of the full text of the public notice of
negative final determination referred to in sub-section (6) to the Federal Government.
(8) Where the Commission has reached a negative final determination, the Federal
Government shall, by notification in the official Gazette,  within fifteen days of receipt of the publicnotice of negative final determination referred to in sub-section (5), withdraw the provisional
safeguard duty, if any, imposed on an investigated product.
(9) Where the Federal Government has withdrawn a provisional safeguard duty imposed
on an investigated product pursuant to sub-sect ion (8), the Commission shall promptly refund the
actual amount collected as provisional safeguard duty on the investigated product, upon receipt of a
written application from the importer in question.
(10) Where the Commission recommends that a definitive safeguard measure take the
form of a definitive safeguard duty, it shall -
(a) specify the rate of definitive safeguard duty the Commission  considers adequate to prevent
the occurrence of or facilitate recovery from serious injury or threat of serious injury;  and
(b) subject to the provisions of section 32, the duration of levy of a definitive safeguard duty and
where the period so recommended is more than one year, recommend a timetable for
progressive liberalisation adequate to facilitate positive adjustment of  domestic industry.
25. Decision by the Federal Government to  apply definitive safeguard measure.  -Where the
report of final determination received by the Federal Government pursuant to section 24, contains an
affirmative determination of serious injury or thereat of serious injury, the Federal Government shall,
no later than thirty days after the receipt of such report from the Commission, take a decision,affirmative or negative, regarding the imposition of a definitive safeguard measure on an investigated
product, taking into account the recommendations of the Commission  set forth in the report of final
determination.
26. Public notice of application of  definitive safeguard measure. - (1) Immediately upon taking a
decision regarding the imposition of a definitive safeguard measure, whether affirmative or negative,
the Federal Government shall notify its decision by means of a public notice of application of a
definitive safeguard measure.
(2) The public notice of application of a definitive safeguard measure referred to in sub-
section (1) shall contain such information as may be prescribed and a copy thereof shall be provided
by the Federal Government to the Commission:
Provided that where Federal Government has taken a decision not to impose a definitive
safeguard measure, the public notice of final determination referred to in sub-section (1) shall only setforth the factual and legal basis for the decision:
Provided further that the Federal Government may, if it deems fit, only publish a summary of
the public notice of final determination referred to in sub-section (1) in the official Gazette providedG/SG/N/1/PAK/2
Page 12
that a full text of such notice shall be promptly placed in the public file to be maintained pursuant to
section 15.
27.  Notification and consultation. – (1) Immediately upon taking a decision to apply a definitive
safeguard measure but before such measure comes into force, the Federal Government shall notify theCommittee regarding the evidence of serious injury or threat of serious injury, the precise description
of an investigated product, the form, level and duration of the proposed measure, the proposed date of
application of the measure, and, where applicable, the proposed timetable for its progressive
liberalisation. Such notification shall conform to any requirements established by the Committee
therefor.
(2) Where the Federal Government proposes to apply a definitive safeguard measure it
shall provide adequate opportunity for prior consultations with those Members requesting
consultations and having a substantial interest as exporters of an investigated product subject to the
definitive safeguard measure, with a view to, inter alia , reviewing the information notified to the
Committee regarding the finding of serious injury or threat of serious injury and regarding the
proposed measure, exchanging views about the measure, and reaching an understanding on ways toachieve the objective set forth in sub-section (3).
(3) In applying a definitive safeguard measure, the Federal Government shall endeavour
to maintain a substantially equivalent level of concessions and other obligations to those existing
under the General Agreement on Tariffs and Trade, 1994, between Pakistan and the exportingMembers which would be affected by such measures.
(4) For the purposes of maintaining a substantially equivalent level of concessions and
other obligations as referred to in sub-section (3), agreement may be reached with affected Members,
through the consultations referred to in sub-section (2), on any adequate means of trade compensationfor the adverse effects of a definitive safeguard measure on the trade of those Members.
(5) The Federal Government shall notify th e Council for Trade in Goods of the WTO
immediately, through the Committee, of the results of any consultations undertaken pursuant to this
section, including, where applicable,  any compensation granted.
28.  Form and application of  definitive safeguard measure.  – (1) A definitive safeguard
measure may take the form of either a definitive safeguard duty on an investigated product or a quota
on imports of the investigation product, as may be recommended by the Commission in its report of
final determination referred to in sub-section (5) of section 24.
(2) Subject to the provisions of section 29, a definitive safeguard measure shall be
applied to all imports of an investigated product, irrespective of source, imported into Pakistan on or
after the date on which the measure comes into force.
(3) Where a definitive safeguard measure takes the form of a definitive safeguard duty,
such duty shall be-
(a) in the form of duty on an investigated product not exceeding the amount which the
Commission considers adequate to prevent the occurrence of or facilitate recovery from
serious injury or threat of serious injury, as recommended by the Commission pursuant to
clause (a) of sub-section (10) of section 24;
(b) imposed in addition to any other duties imposed on an investigated product under any law for
the time being in force; andG/SG/N/1/PAK/2
Page 13
(c) collected in the same manner as customs-duty under the Customs Act, 1969 (IV of 1969).
(4) Where a definitive safeguard measure is in the form of a quota on imports of an
investigated product, such measure shall be imposed and administered by the Federal Government in
conformity with the provisions of section 30 and taking into account the recommendations of  theCommission set forth in the report of final determination.
(5) Where a definitive safeguard duty imposed by the Federal Government is lower than
the amount collected as a provisional safeguard duty, the Commission shall upon receipt of a written
application from the importer in question refund the differential.
29. Non-application of  definitive safeguard measure to certain developing countries. –
Notwithstanding anything contained in this Ordinance, a definitive safeguard measure shall not be
applied to imports of an investigated product originating from a developing country Member as long
as such imports account for no more than three per cent of the total imports of the investigated
product into Pakistan:
Provided that if imports from developing country Members which individually account for
less than three per cent of imports of an investigated product into Pakistan, collectively account for
more than nine per cent of imports of the investigated product into Pakistan, a definitive safeguard
measure may be applied to such imports from those developing country Members.
30. Quota as definitive safeguard measure.  – (1) A definitive safeguard measure in the form
of a quota on imports of an investigated product shall not reduce the quantity of those imports below
the average level registered in the most recent three representative years for which statistics are
available with the Commission.
(2) Notwithstanding the provisions of sub-section (1), the Federal Government may,
upon clear justification that a different level is necessary to prevent or remedy serious injury or threat
of serious injury, apply a quota which reduces the quantity of imports of an investigated product
below the average level registered in the most recent three representative years for which statistics are
available.
(3) If more than one country exports an investigated product to Pakistan, any quota on
imports shall be allocated among supplying countries. The Federal Government shall attempt to reach
agreement with those Members having a substantial interest in supplying the investigated product as
to the allocation of shares of the total quota amount.
(4) Where the Federal Government determines that the method set forth in sub-section
(3) is not reasonably practical for allocation of the quota, the Federal Government shall allocate the
quota among countries having a substantial interest in supplying an investigated product:
Provided that such allocation by the Federal Government shall be based upon the proportions,
supplied by such countries during a previous three years representative period, of the total quantity orvalue of the investigated product:
Provided further that in allocating the quota among supplying countries, the Federal
Government shall take due account of any special factors which may have affected or may be
affecting trade in the investigated product.
(5) Notwithstanding the provisions of sub-sections (3) and (4), in a case in which serious
injury has been found, the Federal Government may allocate the quota among supplying countries onG/SG/N/1/PAK/2
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a different basis, provided that consultations have been held with supplying Members under the
auspices of the Committee, and a clear demonstration is provided to the Committee that -
(a) imports from certain countries have increased in disproportionate percentage in relation to the
total increase in imports of an investigated product during the representative period;
(b) the reasons for the departure from the methodology for quota allocation envisaged under sub-
sections (3) and (4) are justified; and
(c) the conditions of such departure are equitable to all suppliers of an investigated product
concerned.
(6) Notwithstanding the provisions of section 34, a definitive safeguard measure in the
form of a quota allocated on the alternative basis provided for in sub-section (5) shall not be extended
beyond the initial period of its application.
31. Termination without application of  safeguard measure.  - If at any point an investigation
is terminated without the application of a definitive safeguard measure, the Federal Government shall
immediately notify the Committee, in conformity with any requirements established by the
Committee therefor.
32. Duration of  definitive safeguard measure. –  A definitive safeguard measure shall be
applied for a period of no more than four years, including the period of application of any provisional
measure, unless it is extended as provided for in section 35:
Provided that the total duration of a definitive safeguard measure, including the period of
application of any provisional measure, the period  of initial application, and any extension thereof
pursuant to section 36, shall not exceed ten years.
33. Progressive liberalisation. – A definitive safeguard measure whose period of application
exceeds one year shall be progressively liberalised at regular intervals during the period of
application, in accordance with the schedule published in the public notice of application of a
definitive safeguard measure referred to in section 26.
PART VII
REVIEW OF  DEFINITIVE SAFEGUARD MEASURES
34. Review. – (1) If the duration of a definitive safeguard measure, including the period of
application of any provisional safeguard duty, exceeds three years, not later than the mid-term of the
period of application of such measure, the Commission shall examine the situation, through a review
conducted in accordance with the procedures set forth in sections 10, 11, 12, 13, 14, 15, 16 and 17,
mutatis mutandis,  including a review of the effects of the definitive safeguard measure on the
domestic industry concerned and of the domestic industry’s progress in implementing its adjustmentplan.
(2) The results of review shall be set out by the Commission in a report  in which it shall
also recommend whether to maintain or withdraw a definitive safeguard measure under review or to
increase the pace of its liberalisation.
(3) The report referred to in sub-section (2) shall be promptly provided by the
Commission to the Federal Government for its consideration.G/SG/N/1/PAK/2
Page 15
(4) The Federal Government shall, no later than thirty days of the receipt of a report
under sub-section (3),  notify its decision whether to maintain or withdraw a definitive safeguard
measure under review or to increase the pace of its liberalisation, by means of a public notice and the
contents of such notice shall conform, mutatis mutandis,  to the requirements for the public notice of
application of a definitive safeguard measure referred to in section 26.
(5) The Federal Government shall notify the results of review, including the withdrawal
of any modification of a definitive safeguard measure, to the WTO Council for Trade in Goods,
through the Committee, in conformity with any requirements established by the Committee therefor.
(6) Any review initiated pursuant to sub-section (1) shall be concluded by the
Commission within a period not exc eeding four months from the date of initiation of such review:
PART VIII
EXTENSION AND REAPPLICATION OF DEFINITIVE SAFEGUARD MEASURES
35. Extension of definitive safeguard measure. – (1) If domestic industry considers that there is
a continuing need to apply a definitive safeguard measure beyond its initial period of application, it
may, submit a written application to the Commission requesting extension of the measure, not later
than four months before the end of the initial period of application of such measure.
(2) An application under sub-section (1) to the Commission shall include evidence that
domestic industry is carrying out its adjustment plan.
(3) Upon receipt of an application under sub-section (1), the Commission shall conduct
an investigation to determine whether an extension is warranted.
(4) For the purpose of an investigation and determination pursuant to sub-section (3), the
procedures set forth in this Ordinance for applying an original definitive safeguard measure shall be
followed mutatis mutandis .
(5) For the purpose of extension of a definitive safeguard measure, the procedures set
forth in sections 25, 26, 27 and 28 shall be followed mutatis mutandis .
(6) Notwithstanding anything contained in this Ordinance, the Federal Government may,
by notification in the official Gazette, extend a definitive safeguard measure only if the Commission
determines through an investigation pursuant to sub-section (3) that the measure continues to benecessary to offset the effects of serious injury or a threat of serious injury and that there is evidence
that the domestic industry is adjusting.
(7) The Federal Government shall notify its decision, whether affirmative or negative,
regarding the extension of a definitive safeguard measure by means of a public notice of extension ofa definitive safeguard measure or a public notice of non-extension of a definitive safeguard measure,
as the case may be, and the provisions of section 26 or sub-section (6) of section 23 respectively shall,
mutatis mutandis , apply to such notices.
(8) Subject to the provisions of sub-section (6) of section 30, a definitive safeguard
measure may be extended for a period of not more than six years.
(9) A definitive safeguard measure extended pursuant to this section  shall not be more
restrictive than at the end of the initial period of its application and  during the extension period suchG/SG/N/1/PAK/2
Page 16
measure shall continue to be progressively liberalised in accordance with the schedule published in a
notice of extension of a definitive safeguard measure referred to in sub-section (7).
(10) In extending a definitive safeguard m easure, the Federal Government shall endeavour
to maintain a substantially equivalent level of concessions and other obligations to those existingunder the General Agreement on Tariffs and Trade, 1994, between Pakistan and the exporting
Members which would be affected by such measure.
(11) The requirements pertaining to notifications to the Committee and to the Council for
Trade in Goods of the WTO set forth in sections 10, 21, 24, 27, 29, 30, and 31, and the requirements
pertaining to consultations with the exporting Members whose interests would be affected by the
measure set forth in sections 22, 27, and 30 shall apply in full to any extension of a safeguard measureby the Commission under this section.
36. Reapplication of a safeguard measure. – (1) No new safeguard measure shall be applied
for a period of at least two years to imports of a product which was the subject of a definitive
safeguard measure first applied after the 1
st day of  January, 1995.
(2) No safeguard measure shall be applied again to the imports of a product which has
been subject to such a measure, taken after the 1st day of January, 1995, unless a period equal to one-
half of the duration of the earlier definitive safeguard measure on that product has elapsed and the
period of non-application of a safeguard meas ure on such product is at least two years.
(3) Notwithstanding the provisions of sub-sections (1) and (2), a safeguard measure with
a duration of one hundred and eighty days or less may be applied to the imports of a product which
was the subject of an earlier safeguard measure if -
(a) at least one year has elapsed since the date of imposition of the earlier safeguard measure on
the imports of that product;  and
(b) a safeguard measure has not been applied on imports of the product more than twice in the
five years period immediately preceding the date on which the new safeguard measure is to
take effect.
PART IX
MISCELLANEOUS
37. Duties and fees to be held in  non-lapseable personal ledger account. – (1) The
Commission shall establish and maintain a non-lapseable personal ledger account in its name for the
purposes of this Ordinance and all duties and fees collected pursuant to this Ordinance shall be held in
such account.
(2) The account to be established under sub-section (1) shall be maintained and operated
in such manner as may be prescribed.
38.  Power to make rules. – The Federal Government may, by notification in the official Gazette,
make rules for carrying out the purposes of this Ordinance.
39. Public servants . - The employees and other persons authorized to perform or exercise any
function or power under this Ordinance or rendering services to the Commission as consultant orG/SG/N/1/PAK/2
Page 17
adviser shall be deemed to be public servants within  the meaning of section 22 of the Pakistan Penal
Code, 1860 (Act XLV of 1860).
40. Failure to disclose correct information. –  Any person who knowingly and wilfully
provides false, misleading or incorrect informa tion to the Commission whether in an application
received under this Ordinance or, otherwise in connection with an investigation under this Ordinance,
shall be guilty of an offence and shall on conviction be liable to imprisonment for a term which may
extend to three years, or a fine not exceeding five million rupees, or both.
41. Cognizance of offences.  – (1) Notwithstanding anything contained in the Code of Criminal
procedure, 1898 (Act V of 1898), no court other than the court of session shall have jurisdiction to try
any person charged with an offence under section 40.
(2) No court  of session shall take cognizance of an offence under sub-section (1) except
on a complaint in writing made by the order of, or authority from, the Commission signed by any two
members of the Commission.
42. Protection to persons prejudiced in employment because of assisting the Commission . -
(1) An employer shall not -
(a) dismiss an employee, or prejudice an employee in his employment, because the employee has
assisted the Commission in connection with an  investigation or inquiry under this Ordinance;
or
(b) dismiss or threaten to dismiss an employee, or prejudice or threaten to prejudice an employee
in his employment, because the employee propos es to assist the Commission in connection
with an investigation or inquiry under this Ordinance.
(2) For the purposes of sub-section (1), a person shall be taken to assist the Commission
in connection with an inquiry if the person -
(a) gives information, whether orally or in writing, or gives documents, to the Commission in
connection with an inquiry or investigation under this Ordinance;  or
(b) gives evidence or produces documents, at an inquiry, investigation or hearing held under this
Ordinance.
43. Appointment of advisers and consultants. – (1) Subject to sub-section (2), the Commission
may, employ and pay consultants and agents, and technical, professional and other advisers, includingbankers, economists, actuaries, accountants, lawyers and other persons to do any act required to be
done in the exercise of its powers, the performance of its functions or for the better implementation of
the purposes of this Ordinance.
(2) The decision to employ and the terms and conditions of employment of external
advisers and consultants pursuant to sub-section (1) shall be made by the Commission in accordance
with such policy guidelines as may be established by the Federal Government, in consultation with
the Commission, from time to time.
44. Indemnity. –  No suit, prosecution or other legal proceedings shall lie against the
Commission, the Chairman or any member of the Commission or any employee, consultant, agent or
adviser of the Commission for anything which is done in good faith or intended to be done under this
Ordinance or rules made thereunder.G/SG/N/1/PAK/2
Page 18
45. Removal of difficulties. -  If any difficulties arise in giving effect to any of the provisions of
this Ordinance, the Federal Government may make such order, not inconsistent with the provisions of
this Ordinance,  as may appear to it to be necessary for the purpose of removing the difficulty:
Provided that no such power shall be exercised after the expiry of two years from the
commencement of this Ordinance.
46. Ordinance to override other laws. -  The provisions of this Ordinance shall have effect
notwithstanding anything inconsistent therewith contained in any other law for the time being in
force, including, without limitation, the National Tariff Commission Act, 1990 (VI of 1990), and the
Customs Act, 1969 (IV of 1969).
General
(Pervez Musharraf)
PRESIDENT
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