./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q1/CZE/3
2 May 2001
(01-2252)
Committee on Safeguards Original:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLE 12.6 OF THE AGREEMENT
Questions Posed by the UNITED STATES
Concerning the Notification of the CZECH REPUBLIC1
The following communication, dated 30 April 2001, has been received from the Permanent
Mission of the United States.
_______________
1. Measures that may be applied.   Section 3 of the Czech safeguard law lists the types of
safeguard measures that may be applied.  The list includes quantitative restrictions on exports, a “ban”
on imports and exports, import deposits, and restrictions or a ban on transit.
(a) Please identify the provision in the WTO Sa feguards Agreement (SA) that authorizes a
member to apply a measure in the form of a quantitative restriction on exports.  Please explain
how such a measure might prevent or remedy serious injury caused by increased imports.
(b) Please identify the provision in the Safeguards  Agreement that authorizes a member to apply
a measure in the form of a “ban” on the export or import of a product, and please explain how
such a measure would be consistent with the requirement in SA Article 5.1 that any
quantitative restriction on imports not reduce the quantity of imports below the level of theaverage for the three most recent representative years for which import statistics are available.
(c) Please identify the provision in the WTO Safeguards Agreement that authorizes a member to
apply a measure in the form of  “import deposits,” and explain how such a measure differs
from an import duty.
(d) Please explain what is meant by a restriction or ban on transit, and indicate the provision in
the Safeguards Agreement that authorizes the application of a measure in this form.
2. Basis for applying a measure.   Section 9 of the Czech law sets out three eligibility tests,
expressed in the disjunctive, for applying a safeguard measure.  The second and third of these tests,
which are set out in subsection (b) of section 9, do not appear to have a basis in the Safeguards
Agreement. These tests would allow the Czech Republic to apply a measure when increased imports
are causing or threatening to cause (a) “serious disturbances in any sector of the economy, or [(b)]
difficulties which could bring about serious deterior ation in the economic situation of a region of the
Czech Republic.”  These tests appear to include a different injury standard (“serious disturbances” and
“difficulties”, as opposed to “serious injury” or “threat of serious injury”) and would not require a
finding of serious injury to a domestic industry producing a like or directly competitive product.
Please identify the provision in the WTO Safeguards Agreement that supports these tests.
                                                     
1 G/SG/N/1/CZE/3G/SG/Q1/CZE/3
Page 2
3. Self-initiation of investigations.   Section 12(2) of the Czech law permits the Ministry to self-
initiate an investigation “if, in performing its functions, it determines that increased imports of
specific products cause or threaten to cause serious injury to a domestic industry”.  This suggests that
the Ministry will have pre-decided the case before the investigation is instituted.  Please explain howthis provision is
(a) consistent with Article 3.1 of the Safeguards Agreement, which states that a member may
apply a safeguard measure only following an investigation by the competent authorities, and
providing reasonable public notice to all interested parties, and public hearings or other
appropriate means to present evidence and their views; and
(b) consistent with Article 4.2 of the Agreement, which requires that the competent authorities
evaluate all relevant factors of an objective and quantifiable nature, including the listed
factors, and provides that an affirmative determination not be made unless the investigation
demonstrates, on the basis of objective evidence, the existence of the causal link between
increased imports and serious injury or threat of serious injury.
4. Time for providing information.   Section 15(1) appears to provide that the Ministry will
ordinarily give interested parties only 10 working days to furnish evidence.  From what day does the
10 days run?  Please explain how this requirement provides interested parties with the “reasonable
public notice” required by Article 3.1 of the Safeguards Agreement.
5. Provisional relief.   Article 6 of the Safeguards Agreement requires that the competent
authorities, before applying a provisional safeguard measure, find, inter alia , “clear evidence” that
increased imports are causing or threatening to cause serious injury.  Please explain where this
requirement is found in section 19 of the Czech law, which sets out the basis for taking a provisionalaction.
__________