WT/DS490/13  
 
15 April 2019 
(19-2474) Page: 1/3 
  Original: English  
 
INDONESIA – SAFEGUAR D ON CERTAIN IRON OR  STEEL PRODUCTS  
UNDERSTANDING BETWEE N INDONESIA AND CHINES E TAIPEI  
REGARDING PROCEDURES  UNDER ARTICLES 21 A ND 22 OF THE DSU  
The following communication, received on  11 April 2019, from the delegation of Indonesia  and the 
delegation of Chinese Taipei t o the Chairperson of the Dispute Settlement Body, is circulated at the 
request of these delegations.  
 
_______________  
 
 
Indonesia and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  would like to 
inform the Dispute Settlement Body of the attached Agreed Procedures under Articles 21 and 22 of 
the Dispute Settlement Understanding between Indonesia and the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu  with respect to the dispute Indonesia – Safeguard on Certain 
Iron or Steel Products  (DS490).  
We request that you please circulate the attached agreement to the Members of the Dispute 
Settlement Body.  
 
  WT/DS490/13  
 
- 2 - 
 
  Understanding between the Separate Customs Terr itory of Taiwan, Penghu, Kinmen and 
Matsu and Indonesia on the Sequencing of Proceedings  
 
 
The Dispute Settlement Body (DSB) adopted its recommendations and rulings in the dispute 
Indonesia — Safeguard on Certain Iron or Steel Products  (DS49 0) on 27 Augus t 2018.  
Pursuant to Article 21.3 (b) of the Understanding on Rules and Procedures Governing the Settlement 
of Disputes (DSU), Indonesia , the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
and Viet Nam agreed that the reasonable period of time (RPT) during which Indonesia would have 
to implement  the recommendations and rulings of the DSB in this dispute would be seven months, 
which will expire on 27 March 2019 (WT/DS490/12 and WT/DS496/13) . 
The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  and Indonesia (collectively, 
"the parties") hereby agree on the following procedures for the exclusive purpose of this dispute. 
They are designed to facilitate a satisfactory resolution to the dispute in a cooperative manner and 
to reduce the scope for procedural disagreements, without prejudice to either party's views on the 
correct interpretation and application of the DSU.  
1. The parties agree to  follow the procedures provided in Articles 21.5, 22.2 and 22.6 of the 
DSU, in the manner set out below, in case of any disagreement as to the existence or 
consistency with a covered agreement of measures taken to comply with the 
recommendations and rulings  of the DSB in this dispute.  
 
2. The parties agree to resolve any disagreement as to the existence or consistency with a 
covered agreement of measures taken to comply with the recommendations and rulings in 
this dispute in accordance with the procedures set out in Article 21.5 of the DSU, as modified 
and elaborated in this Understanding. The parties agree to hold informal consultations within 
20 days before the end of the RPT to discuss Indonesia's progress regarding its compliance 
with the recommendations an d rulings of the DSB in this dispute.  
 
3. The Parties agree to hold consultations under Article 21.5 of the DSU within 20 days from 
the date of receipt of the request. The request for such consultations can only be submitted 
after the expiry of the RPT.  
 
4. If the consultations as stipulated under paragraph 3 fail to resolve the issues, either party 
may request the establishment of a panel pursuant to Article 21.5 of the DSU at any time it 
deems it appropriate. At the first DSB meeting at which  any request for t he establishment 
of an Article 21.5 panel is considered, the parties agree not to object to the establishment 
of that panel.  
 
5. The parties to the dispute shall cooperate to enable the Article 21.5 panel to circulate its 
report within 90 days of the panel's  establishment, excluding any such time during which 
the panel's work may be suspended pursuant to Article 12.12 of the DSU. To this end, the 
parties agree that the Article 21.5 proceedings will comprise two written submissions filed 
consecutively by the p arties (double briefing) and the panel will convene only one meeting 
with the parties.  
 
6. The parties agree that any Article 21.5 panel must be composed of the original panelists 
unless any of them is unavailable. If so, the parties shall seek agreement on the composition 
of the panel within 10 days after the establishment of the panel. In the absence of that 
agreement, either party may request the Director -General of the WTO to compose the panel 
in accordance with the procedures set out in Article 8.7 of th e DSU. In the event that the 
Director -General is requested to compose the panel, the parties agree to request that, in 
doing so, the Director -General shall seek to compose the panel of persons who will be 
available to act in both the Article 21.5 and Artic le 22.6 proceedings.  
 
7. The parties agree that if, on the date of the circulation of the panel report under Article 21.5 
of the DSU, the Appellate Body is composed of fewer than three Members available to serve 
on a division in an appeal in these proceedings , they will not appeal that report  under 
Articles  16.4 and 17 of the DSU.  
 WT/DS490/13  
 
- 3 - 
 
  8. In the event that the DSB finds, pursuant to Article 21.5 of the DSU, that a measure taken 
to comply does not exist or that Indonesia  has failed to bring the measure found to be  
inconsistent with a covered agreement into compliance therewith the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu  may request  negotiations with Indonesia  
with a view to developing mutually accep table compensation or may request authorization 
to suspend concessions or other obligations  pursuant  to Article 22 of the DSU after the 
adoption by the DSB of the Article 21.5 panel report  and, where relevant, the Appellate Body 
report . 
 
9. The Separate Custo ms Territory of Taiwan, Penghu, Kinmen and Matsu  may request 
authorization to suspend concessions or other obligations pursuant to Articles 22.2 and 22.6 
of the DSU only if the procedures laid out in Article 21.5, as modified and elaborated in this 
Underst anding, have been followed. Indonesia shall not object to any request made by the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  in accordance with these 
provisions on the basis of the fact that the request was made outside the time period 
specified in the first sentence of Article 22.6 of the DSU. This provision is without prejudice 
to Indonesia's right to have the matter referred to arbitration in accordance with Article 22.6 
of the DSU.  
 
10. The parties to the dispute will cooperate to enable  the arbitrator under Article 22.6 of the 
DSU to circulate its decision within 60 days of the referral to arbitration.  
11. In the event that  the parties reach a mutually agreed solution to this dispute during the 
course of the Article 21.5 compliance panel or the Article 22.6 arbitration proceedings, and 
upon notification of such a mutually agreed solution, the parties will jointly request the  panel 
or the arbitrator to suspend its work (including the circulation of its report or award).  
12. The parties to this dispute  will continue to cooperate in all matters related to these agreed 
procedures and agree not to raise any procedural objection to any  of the steps set out herein. 
If, during the application of these procedures, the parties to the dispute consider that a 
procedural aspect has not been properly addressed in these procedures, they will endeavor 
to find a solution within the shortest time p ossible that will not affect the other aspects and 
steps agreed herein.  
13. These agreed procedures in no way prejudice other rights of either party to take any action 
or procedural step to protect its rights and interests, including recourse to the DSU.  
 
__________