G/SG/Q1/TPKM/7  
 
7 March 2014  
(14-1393)  Page: 1/3  
Committee on Safeguards  Original: English  
 
 NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 12.6 OF THE AGREEMENT 
QUESTIONS POSED BY THE UNITED STATES REGARDING THE NOTIFICATION OF THE  
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU1 
 
The following communication, dated 5 March 2014, is being circulated at the request of the 
Delegation of the United States.  
 
_______________ 
 
 
The United States thanks the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
(hereinafter "Chinese Taipei") for its notification of the revised Rules for Handling Import Relief 
Cases  (hereinafter "Revised Rules") and poses the following questions. 
 Question 1 
 
With regard to Article 3 of Chapter 1 (General Provisions) of the Revised Rules, Chinese Taipei states that in making a determination of a threat of serious injury, in addition to the other factors, "the production capacity and export capability of  the major exporting countries shall be considered 
so as to evaluate whether the said industry is to be seriously injured if the relief measure is not 
adopted." This consideration appears to concern fu ture serious injury and to be premised on an 
increase in imports that has not yet occurred, that is, a threat of increased imports. Please explain 
how Chinese Taipei would apply such a provision and how such a provision would be consistent 
with Chinese Taipei's obligations under the WTO Agreement on Safeguards.   
Question 2 
 With regard to  Article 4 of Chapter 1 (General Provisions) of the Revised Rules, the list of relief 
measures includes a "financing guarantee, subsidy for technological research and development, 
assistance for changing the line of business, professional training or other adjustment measures or 
assistance." Please explain how relief measures in these forms, particularly measures in the form of a subsidy, would be consistent with Chinese Taipei's obligations under the WTO Agreement on 
Safeguards and other WTO agreements. 
 Question 3 
 
Articles 8 and 9 in Chapter 2 (Petition) of the Revised Rules set out requirements relating to the content of petitions and the situations that could cause the dismissal of the petition. Please explain 
whether the Ministry of Economic Affairs will provid e notice to interested parties of the filing of a 
petition, make a public version of the petition available to interested parties for review, and 
provide opportunity for interested parties to comment on the petition. Please explain whether the petitioner would be expected to indicate if it  is also seeking provisional safeguard measures 
pending completion of the investigation, and if so, to state the type and amount of measure 
sought.   
                                               
1 G/SG/N/1/TPKM/3 (dated 28 January 2014). G/SG/Q1/TPKM/7 
 
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  Question 4 
 Article 9.2, last paragraph, requires the Ministry of Economic Affairs to "immediately notify the petitioner and known interested parties in writing and give a public notice thereof" when it makes 
a decision on whether or not to institute an investigation. If the ministry does not announce that a 
petition was filed and does not disclose the contents  to the public, please explain how the Ministry 
will know who is a "known interest ed party" who must be notified. 
 
Question 5  Articles 13 and 20 of Chapter 3 (Investigation Into  Injury Caused To The Industry) of the Revised 
Rules discuss the process for a hearing to be held in conjunction with a safeguard investigation. 
Please clarify the following: 
 
a. How will notice be given to parties in advance of the date set for each hearing, and how 
far in advance will this notice be given in order to provide "reasonable public notice" as stipulated in Article 3.1 of the WTO Agreement on Safeguards? 
 
b. Will parties which present information orally at hearings be required to provide that 
same information in writing following the hearing so that other interested parties have access to the information presented during the course of a hearing? 
 
Question 6  
Article 16 bis of the Revised Rules addresses the issue of provisional safeguard measures. Please 
explain the procedures that will be followed  in making such determinations, including: 
  
a. Whether the Commission will automatically make critical circumstances determinations 
in all safeguard investigations or only when requested to do so by the petitioner;  
b. Whether public notice will be provided of the intent to make a determination and the 
timing; and 
 
c. Whether interested parties will be provid ed with an opportunity provide views and 
information and to be heard.  
 
Question 7 
 
In addition, in Article 16 bis, last paragraph, please explain what is meant by the phrase "When the 
Ministry of Economic Affairs gives a public notice  that the market disruption does not exist." The 
term "market disruption" does not appear elsewhere in this context.  
 
Question 8  
Articles 16 bis and 22 of the Revised Rules discuss the imposition of provisional and final measures, 
respectively. However, Article 16 bis of the Revised Rules seems to require the approval of the 
Executive Yuan prior to imposition of a measures , while Article 22 requires that the Ministry of 
Economic Affairs gives public notice of final decision and presents that final decision to the 
Executive Yuan for recordal. Please explain whet her the Executive Yuan has any decision-making 
authority in the course of a safeguard investigation and, if so, whether Executive Yuan can amend the level of measures recommended in any way. 
 
Question 9  
Article 19 of the Revised Rules appears to provide a different test and procedure in the case of an 
investigation involving a perishable agricultural product. In this regard:  
a. Please explain what is meant by the phrase "where the serious injury would be difficult 
to cure if relief measures are not adopted in time," including whether this phrase only relates to the decision on whether to initiate an investigation, to a determination of critical circumstances, or to a final determination, and how this test is consistent with 
Chinese Taipei's obligations under the WTO Agreement on Safeguards;  G/SG/Q1/TPKM/7 
 
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  b. Please explain whether such a decision would be  made at the request of the petitioner or 
by the Ministry on its own volition;   
c. Please explain what is meant by the term "p erishable agricultural product" and please 
identify the factors or definiti ons that would considered in defining such a product; and 
 
d. Please identify what body comprises the "central agricultural authority" and describe 
how it makes its decisions, including whether it provides opportunity for interested 
parties, including importers and foreign producers, to provide information and views, as well as the opportunity to appear at a public hearing.  
 
Question 10 
 Article 20 of the Revised Rules provides that the Commission "shall notify the petitioner of the 
injury decision in writing and give a public notice  thereof." Please explain whether other interested 
parties, including importers and foreign producers, will also be given written notice at the same time as the petitioner. 
 
Question 11  Article 20 also states that with regard to the recommendation not to impose final measures 
"…if the Ministry of Economic Affairs does not find its [the Commission's] recommendation 
acceptable, the Ministry of Economic Affairs shall promptly order the Commission to hold a hearing within 30 days on the import relief measure measures to be adopted…" Articles 24 and 26 of the 
Revised Rules contain similar language. Please clarify under what criteria the Ministry of Economic 
Affairs may not accept the Commission's recommendation and may instead hold a hearing on the import relief measures to be adopted or may choose to extend a safeguard measure. 
 
Question 12  Articles 20, 24, and 26 of the Revised Rules all indicate that the Ministry of Economic Affairs "shall 
promptly" give public notice of a determination relevant under each specific article. Please explain 
the meaning of the term "promptly" and identify an approximate period of time for the relevant public notices. 
 
Question 13  
Article 22 of Chapter 4 (Import Relief) of the Revised Rules states "{t}he Ministry of Economic 
Affairs may (emphasis added), if necessary, notify and consult with the interested countries before 
making the decision referred to in the preceding paragraph." Please confirm that adequate 
opportunity will be provided "for prior consultations with those Members having a substantial 
interest as exporters of the product concerned…" as required by Article 12.3 of the 
WTO Agreement on Safeguards.  
Question 14 
 Article 24 of the Revised Rules states that interested parties may request termination or 
modification of the relief measures if the reason for the measures ceases to exist or there is a 
change in circumstances. Please explain whether the term "interested parties" includes importers and foreign producers, the nature of the reasons an d evidence they must include in their request, 
the nature of the investigation the Commission will conduct, including the time for completing the 
investigation, and whether it will hold hearings and provide interested parties with an opportunity 
to appear and provide information and views.   
Question 15 
 Please confirm that any extension of safeguard measures under Article 25 of the Revised Rules will 
continue to be liberalized as required under Article 7.4 of the WTO Agreement on Safeguards. 
 
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