WORLD TRADE G/SG/N/1/SLV/2
2September 1996
ORGANIZATION(96-3435)
Original: Spanish Committee onSafeguards
NOTIFICATIONS OFLAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TOSAFEGUARD MEASURES
ELSALVADOR
Thefollowingcommunication,dated29July1996,hasbeenreceivedfromthePermanentMission
ofElSalvador.
_______________
Irefer toournote017,dated 13March 1995, notifying, pursuant toArticle 12.6ofthe
AgreementonSafeguardsoftheWorldTradeOrganization,thatElSalvadorappliestheCentralAmerican
Regulations onSafeguard Measures. TheRegulations were notsubmitted atthattimebecause they
were being reviewed attheCentral American level. Please findattached hereto acopy ofthefinal
version oftheRegulations.G/SG/N/1/SLV/2
Page2
PERMANENT SECRETARIAT OFTHE GENERAL TREATY ON
CENTRAL AMERICAN ECONOMIC INTEGRATION
CENTRAL AMERICAN REGULATIONS ONSAFEGUARD MEASURES
Contents
Page
CHAPTER I.General provisions 4
Article 1. Definitions 4
Article 2. Object oftheRegulations 5
Article 3. Scope 5
Article 4. Substantive rules 5
Article 5. Initiation ofproceedings 5
CHAPTER II.Procedure fortheadoption ofsafeguard measures
against thirdcountries 5
Article 6. Purpose oftheprocedure 5
Article 7. Investigating authority 6
Article 8. Period covered bytheinvestigation 6
Article 9. Standing 6
Article 10. Application requirements 6
Article 11. Examination oftheapplication 7
Article 12. Notification ofrejection oftheapplication 7
Article 13. Resolution fortheopening ofaninvestigation 7
Article 14. Information tobecontained intheresolution
fortheopening ofaninvestigation 7
Article 15. Notification oftheopening ofaninvestigation 8
Article 16. Time-limit fortheinvestigation 8
Article 17. Access toinformation andthefile 8
Article 18. Investigative powers 9
Article 19. Application andduration ofprovisional measures 9
Article 20. Nature ofprovisional measures 9
Article 21. Notifications andconsultations 9
Article 22. Public hearing 9
Article 23. Statements 9
Article 24. Conclusion oftheinvestigation 10
Article 25. Final resolution 10
Article 26. Requirements ofthefinalresolution 10
Article 27. Consultations andcompensation 10
Article 28. Notifications 10
Article 29. Duration ofsafeguard measures 10
Article 30. Imposition ofthesafeguard measures 11
Article 31. Causal link 11
Article 32. Transmittal totheCouncil 11
Article 33. Suspension oftheinvestigation 11
Article 34. Review ofmeasures 11
Article 35. Publication 11
Article 36. Appeals 11
Article 37. Safeguard measures against adeveloping country 11G/SG/N/1/SLV/2
Page3
Page
CHAPTER III. Final provisions 11
Article 38. Amendments totheRegulations 11
Article 39. Calculation oftime-limits 12
Article 40. Implementing body 12
Article 41. Suppletive application 12
Article 42. Epigraphs 12
Article 43. Repeal clause 12G/SG/N/1/SLV/2
Page4
CENTRAL AMERICAN REGULATIONS ONSAFEGUARD MEASURES
CHAPTER I
General Provisions
Article 1.(Definitions). Forthepurposes ofthese Regulations, theexpressions usedbelow shallhave
thefollowing meaning:
Agreement: TheAgreement onSafeguards annexed totheAgreement
Establishing theWorld Trade Organization.
Investigating authority: TheDirectorate orDirectorate-General ofIntegration ofthe
Ministry oftheEconomy or,asthecasemaybe,the
Directorate competent formatters pertaining toCentral
American economic integration ineachState Party, orthe
technical unitwithresponsibility forinvestigating situations
tending towards theapplication ofthesafeguard measures
provided forinthese Regulations.
Council ofMinisters: TheCouncil ofMinisters forEconomic Integration setupby
Article 37oftheGuatemala Protocol.
Convention: TheConvention ontheCentral American Tariff andCustoms
Regime anditsProtocols.
States Parties: TheStates Parties totheGeneral Treaty onCentral American
Economic Integration, theGuatemala Protocol, andthe
Convention ontheCentral American Tariff andCustoms
Regime.
GATT 1994: TheGeneral Agreement onTariffs andTrade 1994 annexed to
theAgreement Establishing theWorld Trade Organization.
Substantial interest: Interested WTO Members thatexport theproduct subject tothe
measure andwould beaffected byitshallbeconsidered to
haveasubstantial interest inthemeasure.
Minister: TheMinister ofeachState Party having responsibility for
matters relating toeconomic integration or,asthecasemay
be,theapplication ofsafeguard measures.
WTO:
Interested parties:TheWorld Trade Organization
(a) Anexporter orforeign producer ortheimporter ofa
product subject toinvestigation, oratrade orbusiness
association amajority ofthemembers ofwhich are
producers, exporters orimporters ofsuchproduct;
(b) thegovernment ofthecountry orcountries oforigin or
provenance oftheproducts subject toinvestigation;
and
(c) aproducer ofthelikeordirectly competitive product
intheimporting State Party oratrade andbusiness
association amajority ofthemembers ofwhich
produce thelikeordirectly competitive product inthe
territory oftheState Party.G/SG/N/1/SLV/2
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Likeproduct: Aproduct which isidentical, i.e.alikeinallrespects tothe
product under consideration, orintheabsence ofsucha
product, another product which, although notalikeinall
respects, hascharacteristics closely resembling those ofthe
product under consideration.
Directly competitive product: Aproduct which isnotalikeproduct totheonewithwhich it
iscompared butisessentially equivalent forcommercial
purposes because itisintended forthesame useandis
interchangeable withthelatter product.
Guatemala Protocol: TheProtocol totheGeneral Treaty onCentral American
Economic Integration, signed on29October 1993.
Domestic industry: Theproducers asawhole ofthelikeordirectly competitive
products operating within theterritory ofaState Party orthose
ofthem whose collective output oflikeordirectly competitive
products constitutes atleast25percentofthetotaldomestic
production ofthose products.
Region: AlloftheStates Parties asawhole.
SIECA: TheSecretariat ofCentral American Economic Integration.
Third countries: Countries thatarenotStates Parties.
Article 2.(Object oftheRegulations). These Regulations setouttheprovisions fortheimplementation
ofArticle XIXofGATT 1994, theAgreement, andasappropriate theprovisions oftheGuatemala
Protocol andtheConvention.
Article 3.(Scope). Thesafeguard measures which theseRegulations refershallapply toimports from
thirdcountries.
Article 4.(Substantive rules). Allthesubstantive aspects relating totheapplication ofsafeguard
measures shallbedetermined bytheprovisions oftheinstruments referred toinArticle 2ofthese
Regulations.
Article 5.(Initiation ofproceedings). Theprocess ofinvestigation forthepurpose ofverifying whether
safeguard measures should beapplied maybeinitiated onapplication byaparty or,inexceptional
cases determined bytheinvestigating authority, exofficio inaccordance withtheprovisions ofthese
Regulations andtheAgreement.
Where theinvestigating authority proceeds exofficio ,itshallnotify thedomestic industry for
confirmation ofitsconsent tothecontinuation oftheinvestigation.
CHAPTER II
Procedure fortheAdoption ofSafeguard Measures Against Third Countries
Article 6.(Purpose oftheprocedure). Thepurpose oftheinvestigation procedure shallbetodetermine
whether ornotitisappropriate toapply safeguard measures when aproduct isbeing imported into
theterritory ofaStateParty from thirdcountries insuchincreased quantities, absolute orrelative to
domestic production, andunder suchconditions astocause orthreaten tocause serious injury tothe
domestic industry thatproduces likeordirectly competitive products.G/SG/N/1/SLV/2
Page6
Article 7.(Investigating authority). Theinvestigating authority shallcarry outtheenquiries, analyses
andevaluations itseesfitinorder todetermine theexistence ofincreased imports, serious injury or
threat thereof, andthecausal linkbetween thetwo,forthepurpose ofestablishing whether itis
appropriate toimpose asafeguard measure.
Article 8.(Period covered bytheinvestigation). Theperiod covered bytheinvestigation shallbe
understood tobetheperiod covered byimports ofproducts thatareliketoordirectly competitive
withdomestic products, which aretaking place insuchquantities andconditions astocause orthreaten
tocause serious injury tothedomestic industry.
Theperiod covered bytheinvestigation shallbedetermined bytheinvestigating authority in
theresolution fortheopening oftheinvestigation, andmaybemodified bythatauthority when itsees
fit.Inthelatter case, theresolutions imposing provisional orfinalsafeguard measures shallreferto
themodified period.
Article 9.(Standing). Applications fortheinitiation ofaninvestigation procedure maybemade by
therepresentatives ofthedomestic industry prejudiced bytheimports concerning which theinvestigation
isrequested andbytherepresentatives ofproducers associations similarly affected.
Article 10.(Application requirements). Anapplication fortheopening ofaninvestigation shallcontain
atleastthefollowing information:
(a) designation oftheinvestigating authority towhich theapplication ismade;
(b) particulars oftheapplicant, andinthecaseofalegalrepresentative, theaccreditation
documents;
(c) activity inwhich theaffected producer(s) is/are engaged;
(d) description oftheimported product orproducts, giving specifications andinformation
enabling theproduct(s) tobecompared withdomestic products, andtherelevant tariff
heading;
(e) description oftheaffected domestic product anditstariff heading;
(f) information demonstrating theincrease inthevolume ofimports ofthelikeordirectly
competitive product;
(g) information demonstrating theexistence ofserious injury orthreat thereof toadomestic
industry;
(h) volume andvalue ofdomestic production oftheproduct liketoordirectly competitive
withtheimported product;
(i) description oftheapplicant 'sshare, involume andvalue terms, ofdomestic production,
orasthecasemaybe,thatofthemembers oftheorganization towhich theapplicant
belongs, indicating thepercentage share oftheoutput oftheirproducts within domestic
production;
(j) volume andvalue ofimports;G/SG/N/1/SLV/2
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(k) request fortheopening oftheinvestigation andfortheimposition ofasafeguard
measure;
(l) listofknown importers andexporters andplace atwhich theymaybenotified;
(m) country orcountries oforigin orprovenance oftheimports;
(n) place forreceiving notifications;
(ñ) place anddate; and
(o) signature oftheapplicant orlegal representative ofthedomestic industry orofthe
association concerned.
Theoriginal application andaccompanying documentation mustbeprovided inasmany copies
asthenumber ofimporters, exporters orforeign governments identified intheapplication, except in
caseofinformation which isconsidered confidential.
Article 11.(Examination oftheapplication). Within thirty daysofreceiving theapplication, the
investigation authority shallexamine itand:
(a) accept theapplication, ifitfulfils therequirements laiddown inthese Regulations,
anddeclare theopening oftheinvestigation;
(b) iftheapplication isincomplete, notify theapplicant sothathemayfulfil therelevant
requirements within thirty days; or
(c) reject theapplication bymeans ofareasoned resolution, ifitdoesnotprovide sufficient
evidence tojustify opening theinvestigation, oriftheapplication hasnotbeenmade
inrepresentation ofadomestic industry inaccordance withtheprovisions ofthese
Regulations.
Attherequest oftheapplicant, theinvestigating authority mayextend thetime-limit referred
toinsubparagraph (b)ofthisArticle forafurther period ofnotmore thanthirty days.
Iftheapplicant submits theinformation requested inaccordance withsubparagraph (b)ofthis
Article, theinvestigating authority shallresolve toopentheinvestigation orreject theapplication within
aperiod ofnotmore thanthirty daysfollowing thesubmission oftheinformation. Iftheinformation
requested isnotsubmitted within thetime-limit granted, theinvestigation authority shallconsider the
application abandoned andreject andfileit,without prejudice totheright oftheparty concerned
subsequently tosubmit anewapplication.
Article 12.(Notification ofrejection oftheapplication). Theresolution rejecting anapplication must
benotified totheapplicant within tendaysofitsdateofissue.
Article 13.(Resolution fortheopening ofaninvestigation). Where theinvestigating authority decides,
following theexamination referred toinArticle 11oftheseRegulations, thatthereisevidence tojustify
opening aninvestigation, itshallissue aresolution declaring theinitiation oftheinvestigation.
Article 14.(Information tobecontained intheResolution fortheopening ofaninvestigation). The
resolution fortheopening ofaninvestigation shallcontain atleastthefollowing information:G/SG/N/1/SLV/2
Page8
(a) identification oftheinvestigation authority initiating theprocedure, anddateandplace
ofissuance oftheresolution;
(b) indication thattheapplication anditsaccompanying documentation hadbeenaccepted;
(c) name orbusiness name ofthedomestic producer orproducers oflikeordirectly
competitive products andplace atwhich theymaybenotified;
(d) name orbusiness name oftheimporters andexporters andplace atwhich theymay
benotified;
(e) country orcountries oforigin orprovenance oftheimports under investigation;
(f) detailed description oftheproduct orproducts thathavebeenorarebeing imported,
together withtheirtariff heading;
(g) description ofthedomestic product liketoordirectly competitive withtheproduct
thathasbeenorisbeing imported;
(h) period covered bytheinvestigation;
(i) thereasons andjustification fortheresolution, withanaccount oftheevidence
submitted;
(j) time-limit granted tointerested parties tosubmit written statements andanyother
evidence theyconsider pertinent; and
(k) determination ofthepersons fromwhom thepertinent information istoberequested.
Article 15.(Notification oftheopening ofaninvestigation). Theresolution opening aninvestigation
shallbenotified totheinterested parties andtotheWTO Committee onSafeguards within tendays
ofthedateofitspublication. Thenotification totheinterested parties shallbeaccompanied byacopy
oftheapplication andnon-confidential accompanying documents.
Theinterested parties shallhaveaperiod offorty-five daysrunning from thedayfollowing
thenotification tosubmit theirrebuttals andevidence. Attherequest oftheinterested party, the
investigating authority mayextend thistime-limit foraperiod ofnotmore thanthirty days.
Article 16.(Time-limit fortheinvestigation). Theinvestigation shallbeconcluded within sixmonths,
except inexceptional circumstances, asdetermined bytheinvestigating authority, inwhich caseitshall
beconcluded within twelve months from thedateofitsinitiation.
Article 17.(Access toinformation andthefile). Where interested parties refuse access to,ordonot
provide, necessary information within thetime-limit established bytheinvestigating authority, that
authority mayadopt apreliminary orfinalresolution onthebasisofthefactsandevidence available.
Anyinterested party maysubmit itsstatements during theperiod oftheinvestigation, together
withevidence insupport ofthose statements. Access tothefileshallbegoverned bytheprovisions
oftheAgreement andtheprovisions inforce ineachState Party.G/SG/N/1/SLV/2
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Article 18.(Investigative powers). Theinvestigating authority mayrequest anykindofinformation,
including technical opinions, from thevarious departments ofthepublic administration, which shall
provide itasrapidly aspossible. Itmayalsorequest anyadvice itconsiders relevant andanysteps
toascertain thealleged facts.
Article 19.(Application andduration ofprovisional measures). Iftheelements existtojustify the
application ofaprovisional measure, theinvestigating authority shallrecommend suchmeasure tothe
Minister, whomayimpose itbymeans ofaresolution ifthefollowing prerequisites arefulfilled:
(a) iftheresolution fortheopening oftheinvestigation hasbeenissued andpublished in
accordance withtheprovisions ofthese Regulations andatleast30dayshavelapsed
since theinitiation oftheinvestigation;
(b) ifapreliminary determination hasbeenmade oftheexistence ofevidence demonstrating
anincrease inthevolume ofimports, serious injury orthreat thereof andthecausal
linkbetween thetwoinaccordance withtheAgreement;
(c) ifcritical circumstances existwhere delay would cause damage which itwould be
difficult torepair tothedomestic industry; and
(d) ifsuchmeasures arenecessary toprevent serious injury toadomestic industry.
Theduration oftheprovisional measure shallnotexceed 200daysandshallbeapplied in
accordance withtheprovisions oftheAgreement.
Article 20.(Nature ofprovisional measures). Provisional measures shalltaketheformofincreased
duties, guaranteed byasecurity, which shallbepromptly refunded ifthesubsequent investigation does
notdetermine thatincreased imports havecaused orthreaten tocause serious injury toadomestic
industry.
Article 21.(Notifications andconsultations). Before adopting aprovisional measure, theStateParty
shallnotify themeasure totheWTO Committee onSafeguards. Once themeasure hasbeenimposed,
theauthorities oftheState Party shall holdconsultations withWTO Member countries having a
substantial interest inthemeasure.
Aresolution bymeans ofwhich aprovisional measure isadopted shallbenotified tointerested
parties within 10daysfollowing thedateofitspublication.
Article 22.(Public hearing). Thepurpose ofpublic hearings shallbetoallow theinterested parties
theopportunity orally toquestion orrebut theopposing parties withrespect totheinformation and
evidence submitted before theinvestigation authority, soastoenable itandother interested parties
torequest further explanations orspecific clarifications, aswellastoafford interested parties the
opportunitytosubmittheirviews,interalia,astowhetherornottheapplicationofthesafeguardmeasure
would beinthepublic interest.
Theinvestigating authority shallnotify interested parties oftheholding ofapublic hearing
15daysinadvance. Thepublic hearing shall bescheduled ingood timeandshall conclude the
evidentiary period.
Article 23.(Statements). After theevidentiary period hasconcluded withthepublic hearing, interested
parties shallhave15daysinwhich tosubmit theirwritten conclusions ontheinvestigation tothe
investigating authority.G/SG/N/1/SLV/2
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Article24.(Conclusionoftheinvestigation).Theinvestigatingauthorityshallcompletetheinvestigation
andissueafinaltechnical opinion. Within threeworking daysthereafter itshallsubmit thefiletogether
withthetechnical study andrelevant recommendations totheMinister.
Within 10working daysofreceipt, theMinister shalldeclare theinvestigation concluded and
issue thefinalresolution, taking intoconsideration boththefileandtherecommendations ofthe
investigating authority andalsopublic interest criteria.
Article 25.(Final resolution). Theresolution concluding theinvestigation maybeissued onlyafter
allthestepsandenquiries havebeenmade toenable anobjective decision tobeissued. Theresolution
maybeoftwokinds:
(a) itmayauthorize theapplication ofameasure; or
(b) itmaydeclare thatthemeasure should notbeapplied and,where appropriate, revoke
aprovisional measure thathasbeenadopted.
Article 26.(Requirements ofthefinalresolution). Theresolution authorizing theapplication ofa
finalmeasure shallcontain:
(a) Thereasons andjustification therefore;
(b) determination ofthevolume, increase andconditions inwhich theimports under
investigation were made;
(c) positive determination ofserious injury caused orthreatened tothedomestic industry
andthecausal relationship withtheimports under investigation;
(d) nature ofthemeasure established;
(e) expected duration ofthemeasure; and
(f) timetable forthephasing-out ofthemeasure.
Article 27.(Consultations andcompensation). Before imposing orextending afinalsafeguard measure
aperiod of30daysshallbegranted forholding consultations withWTO Member countries having
asubstantial interest.
Forthepurposes ofgranting compensation toaWTO Member orMembers whose exports
areaffected bytheimposition ofthemeasure, theexecutive power orbody oftheState Party may
agree toanyappropriate measure ofcompensation inaccordance withitsdomestic legislation.
States Parties shalltakeaccount ofthecommitments entered intointheframework ofCentral
American economic integration.
Article 28.(Notifications.) Thefinalresolution shallbenotified totheinterested parties andtothe
WTO Committee onSafeguards within 10daysofitspublication.
Article 29.(Duration ofsafeguard measures.) Measures imposed inaccordance withtheseRegulations
shallbeofanexceptional andtemporary nature, andshallbeinforce onlyaslongasnecessary to
prevent orredress theserious injury which caused them tobeapplied, andtofacilitate adjustment.G/SG/N/1/SLV/2
Page11
Theperiod ofapplication ofthemeasure shallnotexceed fouryears, unless itisextended in
conformity withtheprovisions oftheAgreement.
Article 30.(Imposition ofthesafeguard measures.) Resolutions imposing, modifying oreliminating
provisional orfinalsafeguard measures shallbeputintoforceinaccordance withthedomestic legislation
ofeachState Party.
Article 31.(Causal link.) Forasafeguard measure tobeadopted, theremustbeacausal linkbetween
theimports under investigation andtheserious injury orthreat thereof tothedomestic industry.
Thedetermination referred tointhepreceding paragraph shall notbemade unless the
investigation demonstrates, onthebasis ofobjective evidence, theexistence ofacausal linkbetween
increased imports oftheproduct concerned andserious injury orthreat thereof. When factors other
thanincreased imports arecausing injury tothedomestic industry atthesame time, suchinjury shall
notbeattributed toincreased imports.
Article 32.(Transmittal totheCouncil.) Theinvestigating authority shalltransmit toSIECA acopy
ofresolutionsfortheapplicationofprovisionalandfinalsafeguardmeasures,andofresolutionsamending
them, within 10daysoftheirpublication, sothatSIECA mayconvene theCouncil inorder toenable
ittobeinformed ofandapprove themeasures adopted.
Article33.(Suspensionoftheinvestigation.)Ontheproposaloftheinvestigatingauthority,theMinister
maysuspend aprovisional measure thathasbeenadopted andterminate theinvestigation atanystage
when therearesufficient grounds fordoing so.Inthatcase,theMinister shallissuethecorresponding
resolution, which shallbenotified totheinterested parties within 10daysofitspublication.
Article 34.(Review ofmeasures.) Asafeguard measure thathasbeenadopted maybereviewed, at
therequest ofaparty orexofficio ,atanytimeduring itsapplication, inaccordance withtheprovisions
oftheAgreement.
Article 35.(Publication.) Theresolutions fortheopening, suspension andconclusion ofaninvestigation
andfortheapplication ofprovisional safeguard measures orforthemodification ofsuchmeasures
shallbepublished onceonly, atthecostoftheinterested party, inoneofthedaily newspapers with
national circulation andintheOfficial Journal oftheState Party and,when being putintoforce, in
theOfficial Journal oftheCentral American Integration System.
Article 36.(Appeals.) Theappeals provided forinthedomestic legislation ofeachpartymaybeentered
against theresolutions issued bythenational authorities.
Article 37.(Safeguard measures against adeveloping country.) Safeguard measures against aproduct
originating inadeveloping country shallbeimposed onlyinconformity withtherequirements and
conditions oftheAgreement.
CHAPTER III
Final Provisions
Article 38.(Amendments totheRegulations.) TheCouncil ofMinisters shallhaveresponsibility for
amending theprovisions ofthese Regulations attherequest ofaState Party orSIECA.
EachStateParty shallsubmit asix-monthly report totheExecutive Committee forEconomic
Integration, through SIECA, ontheimplementation ofthisinstrument.G/SG/N/1/SLV/2
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Article 39.(Calculation oftime-limits.) Unless otherwise specified, thetime-limits established in
these Regulations shallbecalculated incalendar days.
Article 40.(Implementing body.) Pending theentry intoforce oftheGuatemala Protocol forallStates
Parties, thebody competent formatters pertaining toeconomic integration, inaccordance withthe
legal instruments ofCentral American integration, shall haveresponsibility forimplementing this
instrument, where applicable.
Article 41.(Suppletive application.) Incases notcovered bythese Regulations, States Parties may
apply onasupplementary basis theprovisions andprinciples ofCentral American integration, the
provisions ofpublic international law,andthegeneral principles oflaw.
Article 42.(Epigraphs.) Theepigraphs preceding theArticles ofthese Regulations areexclusively
indicative andtherefore havenoeffect ontheirinterpretation.
Article 43.(Repeal clause.) Upon theentry intoforce ofthese Regulations, theRegulations of
Articles 25and26oftheConvention ontheCentral American Tariff andCustoms Regime, "Unfair
Business Practices andSafeguard Clause", dated 10September 1987, andtheCentral American
Regulations onUnfair Business Practices andSafeguard Clause, dated 29January 1993, aswellas
anyother provision inconsistent withthese Regulations, arehereby repealed asfarastheSafeguard
Clause isconcerned.
Guatemala, 22May1996